EUR/JPY Forecast: Bearish Pressure Builds Below the 100-Day SMA
EUR/JPY remains under moderate selling pressure as the pair struggles to regain momentum after slipping below the critical 100-day Simple Moving Average (SMA). The recent decline has shifted the short-term outlook slightly bearish, with traders closely monitoring key support levels for signs of further weakness.
On the daily chart, EUR/JPY is trading beneath both the 100-day SMA and the 20-day Bollinger Band midline, indicating that sellers currently maintain a slight advantage. While downside momentum is not yet extreme, the Relative Strength Index (RSI) near 43 suggests that bearish sentiment continues to dominate the near-term trend.
Technical Outlook The pair remains trapped within a broad trading range, but recent price action points to increasing downside risks.
📈 Bullish Scenario For buyers to regain control, EUR/JPY must reclaim and close above the 100-day SMA near 184.60. A successful breakout above this level could open the door toward: 🎯 185.33 – Bollinger midline resistance 🎯 186.25 – Recent Bollinger upper band peak
Such a move would improve market sentiment and potentially trigger a stronger recovery phase. 📉 Bearish Scenario The immediate support remains around the lower Bollinger Band near 184.40. A decisive break below this area could accelerate selling pressure toward: 🎯 183.50 – May 7 low 🎯 182.83 – March 31 low Further weakness below these levels could strengthen the broader bearish outlook.
Market Outlook EUR/JPY remains vulnerable while trading below its major moving averages. Traders should closely watch the 184.40–184.60 zone, as a breakout from this range may determine the next significant market direction. For now, the short-term bias remains cautiously bearish.
