The EUR/JPY currency pair experienced a significant decline on Friday, with prices dropping to near 163.10 following a 0.72% decrease. This downward movement was attributed to the pair’s failure to surpass the 164.00 Simple Moving Average (SMA), which resulted in a rejection and subsequent sell-off.
Technical indicators, including the MACD and RSI, supported the bearish trend observed in the EUR/JPY pair. The MACD histogram displayed a red coloration and increasing size, indicating mounting selling pressure. Additionally, the MACD line remained below the signal line, further emphasizing the negative sentiment. The RSI, with a value of 43, was in negative territory and displayed a sharp decline, signaling a growing selling bias.
The pair’s potential for further downside movement was highlighted by its position below the 163.50 resistance level. Traders may want to consider support levels at 163.00, 162.50, and 162.00, while keeping an eye on resistance levels at 164.00, 164.50, and 165.00 for potential reversal points.
In conclusion, the EUR/JPY currency pair faced a significant decline on Friday, with technical indicators pointing towards a continuation of the bearish trend. Traders should monitor key support and resistance levels for potential trading opportunities as the pair navigates its current price action.
