Buyers step in, lifting pair above 163.00 and still holding losses

• EUR/JPY fell 0.47% to 163.10 during Tuesday’s session.
• The price rose above 163.00 as buyers intervened following a decline to 161.50, but indicators remain deeply negative.
• The pair could continue to lose ground as long as it remains below the 20-day SMA.

The EUR/JPY fell 0.47% to 163.10 during Tuesday’s session, dragged down by the strength of the Japanese yen. However, after the pair fell to a low of 161.50, buyers stepped in and pushed it back above 163.00. Nevertheless, if the pair can hold above the 20-day Simple Moving Average (SMA), it could potentially reverse its recent losses and resume its uptrend.

Technical indicators for the EUR/JPY currency pair indicate a negative outlook. The Relative Strength Index (RSI) oscillator has fallen to 46, implying increasing selling pressure. Furthermore, the Moving Average Convergence Divergence (MACD) is significantly bearish, with a histogram trending downwards. Taken together, these indicators point to bearish sentiment for the EUR/JPY pair, potentially leading to continued declines.

The EUR/JPY pair recovered slightly on Tuesday, but technical indicators point to a negative outcome prospects. Both the RSI and MACD are deeply negative, indicating that further declines are likely as long as the pair remains below the 20-day SMA. Buyers stepped in and lifted it above 163.00, but they may not be able to sustain this level as technical indicators suggest the pair is about to resume its downtrend and fall further in the near term.

EUR/JPY daily chart