The EURJPY pair on the Daily Chart has been in a downtrend since 1 September 2020 when it registered the high price at 127.065, followed by a series of lower tops and lower bottoms. On 28 September 2020, the EURJPY pair recorded the low price of 122.369.
When applying Oscillator Analysis to the price chart, one can see that price is trading below the SMA 60 period Moving Average line, a fact which confirms the pair’s downward path.
Furthermore, the Moving Average/Convergence Divergence (MACD) Oscillator is recording values below the zero line which hints to the bearish bias of financial instrument.
Additionally, the Relative Strength Index (RSI) Oscillator registers values below the fifty line which indicates negative sentiment. All three technical indicators are in agreement with regards to the downward bias of the pair.
Three price targets may be calculated upon applying the Fibonacci tool to the price chart.
- The first price target is estimated at 122.806 (161.8%).
- The second price target is seen at 120.174 (261.8%).
- The third price target is projected at 115.916 (423.6%).
While the first target has already been breached, the EURJPY pair is currently trading below the downtrend line. Although the market is currently seeing a countertrend, this might just be a temporary correction, as long-term sentiment remains bearish.
Of course, supply and demand as well as the crowd sentiment will determine the future course of the EURJPY pair.
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