URGENT UPDATE: The EUR/JPY currency pair has plunged to 181.00 during the Asian session on Thursday, marking a significant decline as bearish momentum intensifies. This drop follows a steep retracement from the 186.25 level, now reaching its lowest point in over two months.
The latest trading data reveals that EUR/JPY experienced heavy selling pressure for the fourth consecutive day, driven predominantly by a strengthening Japanese Yen (JPY). This downward movement was triggered by breaking below crucial technical support levels, particularly the 50-day Simple Moving Average (SMA) and the 183.00 support line, which has raised concerns among traders about further declines.
Currently, spot prices are trading down nearly 0.50% for the day, and analysts suggest that the pair could be vulnerable to additional losses. The next critical support level is the 100-day SMA, positioned at 180.75. If EUR/JPY falls below this threshold, it may signal a deeper retracement, prompting traders to reassess their positions.
The Moving Average Convergence Divergence (MACD) indicator has turned increasingly negative, while the Relative Strength Index (RSI) stands at 36, indicating weakening momentum without entering oversold territory. A breach beneath the 100-day SMA would reinforce the bearish outlook, while recovery above the 50-day SMA could reignite bullish sentiment.
As the Japanese Yen continues to attract strong buying interest, traders are advised to monitor these technical indicators closely. A daily close back above the 50-day SMA would be crucial for reviving upside momentum for the EUR/JPY cross.
This development is vital for investors and traders alike, as it highlights the current volatility in the forex market. The performance of the Japanese Yen is particularly noteworthy this week, as it has emerged as one of the strongest currencies against major counterparts, including the US Dollar and Euro.
Stay tuned for updates as this story develops and watch for potential shifts in market trends that could impact your trading strategies.
