URGENT UPDATE: The EUR/JPY cross has plunged to 181.00, marking a significant drop from the 186.25 level earlier this week. This decline, ongoing for four consecutive days, has brought the currency pair to its lowest point in over two months during the Asian session on Thursday.
Heavy selling pressure is evident as the Japanese Yen continues to gain strength, pushing EUR/JPY below critical technical support levels. The break below the 50-day Simple Moving Average at 183.00 has intensified bearish sentiment, with traders eyeing a potential breach of the 100-day SMA currently at 180.75.
Spot prices have slipped nearly 0.50% today, revealing a vulnerable market ready for further losses. The Moving Average Convergence Divergence (MACD) histogram indicates negative momentum, suggesting that the bearish trend may continue unless a recovery occurs.
“A daily close back above the 50-day SMA would reignite bullish momentum for the EUR/JPY cross,” experts warn.
The current RSI stands at 36, indicating weakening momentum. A move below the 100-day SMA could signal deeper declines, while a recovery past 50 on the RSI could offer a glimmer of hope for bulls.
The significant strength of the Japanese Yen is underscored by its performance against other major currencies this week, with JPY showing the most substantial gains, particularly against the US Dollar, which is down 3.23%.
Market analysts are closely monitoring these developments as the EUR/JPY continues to trade negatively. The implications of these currency movements are far-reaching, impacting not just traders but economies that rely heavily on currency stability.
As this situation develops, traders and investors are advised to remain vigilant and be prepared for further fluctuations in the EUR/JPY cross. With the market at a critical juncture, the next few days will be crucial in determining the direction of this currency pair.
Stay tuned for continuous updates on this developing situation.
