EUR/JPY and GBP/JPY Remains At Risk of More Downsides

FXOpen

The Euro and British Pound started a steady decline in the past few days against the Japanese Yen. Both EUR/JPY and GBP/JPY are likely to face hurdles and remain at a risk of more losses.

Important Takeaways for EUR/JPY and GBP/JPY

  • The Euro failed to stay above the 120.80 support and extended its decline against the Japanese Yen.
  • There is a major bearish trend line forming with resistance near 119.95 on the hourly chart of EUR/JPY.
  • GBP/JPY broke a key support zone near the 134.00 region to move into a bearish zone.
  • There is a crucial bearish trend line forming with resistance near 133.25 on the hourly chart.

EUR/JPY Technical Analysis

After facing hurdles near the 122.40 and 122.50 levels, the Euro started a steady decline against the Japanese Yen. The EUR/JPY pair broke many major supports near 121.00 and 120.80 to enter a bearish zone.

Besides, there was a close below the 120.50 level and the 50 hourly simple moving average. It traded to a new monthly low at 119.58 on FXOpen and it is currently consolidating losses.

EUR/JPY Technical Analysis Euro Yen

On the upside, an initial resistance is near the 119.95 and 120.50 levels. There is also a major bearish trend line forming with resistance near 119.95 on the hourly chart of EUR/JPY.

Above the trend line, the 50% Fib retracement level of the recent decline from the 120.54 high to 119.58 low is also at 120.06. The main resistance on the upside is near the 120.40 level and the 50 hourly simple moving average.

The 76.4% Fib retracement level of the recent decline from the 120.54 high to 119.58 low is also near the 120.31 level. Therefore, the pair must surpass the 120.00 and 120.40 resistance levels to start a strong recovery wave.

Conversely, the pair could continue to move down and it might soon break the 119.50 support zone. The next key supports are near the 119.00 and 118.80 levels.

GBP/JPY Technical Analysis

The British Pound also followed a similar pattern declined steadily from the 136.00 resistance against the Japanese Yen. The GBP/JPY pair traded below the 135.00 pivot level to move into a bearish zone.

More importantly, the pair settled below the 133.80 support area and the 50 hourly simple moving average. The pair traded to a new monthly low at 132.38 and it is currently consolidating losses.

GBP/JPY Technical Analysis Pound Yen

On the upside, an initial resistance is near the 133.20 and 133.30 levels. There is also a crucial bearish trend line forming with resistance near 133.25 on the hourly chart.

The trend line is close to the 23.6% Fib retracement level of the recent drop from the 136.34 high to 132.38 low. The key resistance on the upside is near the 133.80 level (the recent breakdown zone) and the 50 hourly simple moving average.

The 38.2% Fib retracement level of the recent drop from the 136.34 high to 132.38 low might also act as a resistance near 133.90. Therefore, GBP/JPY must climb above the 133.30 and 133.40 resistance levels to start a strong recovery wave.

If not, the pair is likely to resume its decline from 133.25 or 133.40. An initial support is near the 132.40 level, below which there is a risk of more downsides in GBP/JPY below 132.00 and 131.50.

Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Latest from Forex Analysis

Commodities and European currencies Test Key Supports EUR/USD Analysis: The Price Today Has Set Its Minimum Since the Beginning of March Market Analysis: GBP/USD Dives While USD/CAD Gains Bullish Pace The US Currency Corrects After Recent Growth USD/JPY Price Analysis: Consolidation ahead of US News

Latest articles

Weekly Market Wrap With Gary Thomson: NIKKEI-225, USD/JPY, GBP/USD, USD/CAD, Gold
Financial Market News

Weekly Market Wrap With Gary Thomson: NIKKEI-225, USD/JPY, GBP/USD, USD/CAD, Gold

Get the latest scoop on the week's hottest headlines, all in one convenient video. Join Gary Thomson, the COO of  FXOpen UK, as he breaks down the most significant news reports and shares his expert insights.

  • NIKKEI-225 Analysis Indicates Possibility

Forex Analysis

Commodities and European currencies Test Key Supports

On the eve of the Easter holidays, the main currency pairs have slightly slowed down the development of the main trends and are consolidating near key ranges, the breakdown of which could provoke a change in the vectors of medium-term

Shares

Stock Market Analysis: NVDA Losing Leadership?

Since the start of the week, the S&P-500 Index (US500) is up about 0.58% while NVDA's share price is down about 3.8%. This is a worrying sign for Nvidia stock investors — could it be a sign

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 65.68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.