Eurjpy Remains In Downtrend

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Eurjpy Remains In Downtrend

Eur/Jpy Remains In Downtrend

Ever since making a high on 16th August, EUR/JPY continues to trend lower and lower. If we look at the recent price action of EUR/JPY, it shows a series of peaks and troughs with prices continuing to lower.

The price action shows that EUR/JPY is now going through a downtrend in the short term. This also means that EUR/JPY will likely move even lower from the current levels.

Eur/Jpy Touched Lows Near 157.47

On Friday, EUR/JPY touched 157.47 which was a new low for the cross. Since then, the pair has recovered but even that recovery seems to have come to an end. It is safe to say that the recent correction has now run out of steam which means the bears are now back in action.

If the EUR/JPY breaks below the support level of around 157.47, it will be a sign that the pullback has officially ended. In that case, we can expect an extension of the bearish trend.

In this case, the next target for the EUR/JPY will be around 154.44, which is the low from 5th August. If the bears even challenge and break this level, it will mean the next target for the bears is now 154.00.

However, it could also mean the EUR/JPY will go into the oversold territory. In that case, the RSI reading will cling to the lows and could give birth to a new uptrend in the EUR/JPY.

On the fundamental front, the EUR/JPY is under pressure as the European Central Bank is expected to lower the policy rate in the next few days. Meanwhile, a similar move will be made by the US Federal Reserve, which will officially start a new era of lower rates across the world.

However, the one central bank which is following a totally different monetary policy is the Bank of Japan (BoJ). Japan's central bank is now hawkish, a rare instance among all the other central banks.

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