- EURJPY jumped to its highest since January 1992 on July 11
- But is trending lower since then due to Japanese intervention
- Oscillators deteriorate significantly, suggesting bearish bias
EURJPY has been in an uptrend since the beginning of the year, storming to a fresh 32-year peak of 175.41. Nevertheless, the pair experienced a pullback following a currency intervention from Japan, with the retreat extending towards the 50-day simple moving average (SMA) and ascending trendline in place since December 2023.
Should bearish pressures persist and the pair violate the upward sloping trendline, the June support of 167.50 could act as the first line of defence. A break below that zone could trigger a retreat towards 165.34 or 164.28, two previous resistance regions that could serve as support in the future.
On the flipside, if the price edges back higher, the April high of 171.56 may prevent initial advances. Higher, the pair could meet resistance at 173.50 ahead of its 32-year peak of 175.41. Conquering this barricade, the bulls could then attack the 180.00 psychological level.
In brief, EURJPY has been undergoing a steady correction following its 32-year peak of 175.41, with the pair currently challenging a crucial technical zone. Hence, a break below the fortified region that includes the 50-day SMA and ascending trendline could further deteriorate the technical picture.
