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EUR/JPY Continues to Trade in a Range

The market is not sure what to do with the EUR/JPY in this past week. While the USD/JPY rallied because of USD-strength across the board, EUR/JPY has been trading in a range.

EUR/JPY has been ranging roughly between 141.96 and 140.43. The 1H chart shows this consolidation range, which follows a bearish swing a couple of weeks ago. This swing broke a larger rising trendline. so the prevailing bias is bearish in the near-term.

The fact that the RSI has tagged 30 but failed to tag 70 reflects maintenance of bearish momentum in the 1H chart. Also, the fact that price action was rejected from going above the 200-Hour SMA also shows that bears are in charge.