Appraisal of the EUR/JPY price:  experiences his largest daily drop in 6.5 years around in the 200-DMA

Market Analytics and Considerations

Key notes

The EUR/JPY shows modest advances at its lowest points in 3 months.

While the 200-DMA tests the bears, pessimistic oscillators and a crucial support break predict additional decline.

Swing low guards in early December require quick recovery movements.

Taking a break at a 3 low, bids on the EUR/JPY have increased to 140.30 ahead of Wednesday’s European activity.

The cross-currency combination oscillates from around 200-DMA in order to reduce the largest daily decline of June 2016.

However, the EUR/JPY bears remain optimistic due to negative MACD signals, the absence of an oversold RSI, and continued trading below the prior important support line from March 2022, now resistance near 141.85.

Nevertheless, in order for the sellers to regain control, the price must close each day underneath the 38.2% Fibonacci retracement mark of the March-October rise, or around 139.25.

Then, September’s bottom around 137.35 and the 50% Fibonacci retracement mark nearby 136.40 may present obstacles for EUR/JPY bearish well before golden section, specifically the 61.8% Fibo level at 133.55, is considered.

If the EUR/JPY prices continue to decline past 133.55, May’s bottom at 132.66 might serve as that of the bulls’ final line of protection.

As a substitute, rebound advances must surpass the low of 140.75 from December 02 in order to persuade short-term traders.

In that situation, the bull might pay attention to the March support-turned-resistance line graph near 141.85.

It’s important to note that an increase in the EUR/JPY pairing over 141.85 may strive for the June top and the monthly crest, which are located correspondingly around 144.25 & 146.75.

Major TECHNICAL LEVELS