- EUR/JPY falls sharply on Monday, approaching key support levels near 162.00.
- Technical indicators highlight increasing selling pressure as the pair approaches the convergence of the 20- and 100-day SMAs.
- Attention turns to whether the pair can hold steady around 162.00 or face the risk of further declines.
The EUR/JPY pair extended its decline on Monday, dropping 0.90% to close at 162.15. This move underscores growing bearish momentum as the pair nears a crucial technical level, with the convergence of the 20- and 100-day Simple Moving Averages (SMAs) at 162.00 acting as a key support zone. The sharp decline continues the recent downward trend, increasing pressure on buyers.
Technical indicators support the bearish sentiment. The Relative Strength Index (RSI) has fallen to 49, slipping into bearish territory and signaling waning buying interest. Additionally, the Moving Average Convergence Divergence (MACD) histogram shows diminishing green bars, indicating weakening bullish momentum and a stronger bearish bias in the short term.
Looking forward, the 162.00 level, where the 20- and 100-day SMAs converge, will be pivotal. A sustained break below this support could pave the way for further declines, with the next target at 161.50. Conversely, holding above 162.00 may allow buyers to regain control, potentially driving the pair back toward the 163.00 resistance zone. The pair’s performance at these critical levels will determine its trajectory in the coming sessions.
EUR/JPY daily chart
