Eurjpy Will Likely Find Support

Eurjpy Will Likely Find Support by Adam Rosen last updated on August 31, 2023

EUR/JPY Will Likely Find Support At 156.00

EUR/JPY continues on its downtrend and is already trading near 157.00, multi-day lows. According to experts, any further decline in the Euro/Japanese Yen pair will likely push the price near the 55 SMA, which is located near 156.00. So, if this happens, it would be interesting to see how the 156.00 support level holds.

If the 156.00 level has some big buy orders, then the EUR/JPY pair will likely reverse its bearish trend and start moving upwards. But if the sellers overpower the buy orders at the 156.00 level, then the bearish trend will simply resume once again to the next support level located at 155.00, 154.50, 154.00, and so on.

EUR/JPY: 152.50 Remains An Important Support Level

One particular support zone is present near 152.50 also correlates with the 100 SMA on the daily chart. So, out of all the support zones, that's the one that holds the most significance in the near to medium term. After that, the next support level for the EUR/JPY traders to watch out for is 151.40, which also happens to be the 28th July low.

Based on the current technical and fundamental outlook, the EUR/JPY cross may jump back as long as it is trading above the 200 SMA on the daily chart, which is present near 147.51.

If we look at the location of the SMA's on the daily chart, the 20 SMA is present at 157.37. As for the SMA 50 and the SMA 100, they are located at 156.55 and 152.43, respectively.

The nearest pivot point on the EUR/JPY daily chart is 157.71, which is labeled as the S1. Similarly, the S2 and the S3 on the daily chart are present at 157.2 and 156.31 respectively.

On the contrary, the R1 on the daily chart is present at 159.11, followed by R2 at 160.00. After that, the R3 (3rd resistance zone) is present at the 160.52 level based on the pivot point analysis.

And if we look at the EUR/JPY cross from a fundamental point of view, the JPY appears weaker while the EUR looks strong in the long term.