EUR/JPY is supported by moving average

Source: Dukascopy Bank SA


The EUR/JPY currency exchange rate has been finding support in the 50-day simple moving average for all of August. The support of the indicator was enough to push the rate through the June and July high level zone at 157.80/158.00. Meanwhile, the pair remains in two ascending channel patterns.

In the case of the pair declining below the 50-day simple moving average, support could be immediately found in the lower trend line of the channel up pattern that has guided the rate throughout 2023. If the pattern breaks, the rate might decline as low as the 151.10/151.60 range. However, note that the 156.00 and 154.00 levels have acted as support during this summer.

On the other hand, a resumption of the broader surge could be slowed down by the 160.00 mark. Above the 160.00 level, take into account the upper trend line of the three year old ascending channel pattern. It is expected to keep the pair down or even cause a broad consolidation that could have take the form of a sideways or descending pattern.
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