EUR/JPY falls from 15-year high to pull RSI from overbought zone

The recent advance in EUR/JPY appears to have stalled ahead of the March 2008 high (151.69) as the Relative Strength Index (RSI) slips below 70 to indicate a textbook sell signal.

EUR/JPY Rate Outlook

EUR/JPY halts a three-day rally as it falls back from a fresh yearly high (151.62), with the opening range for May in focus as the exchange rate registered the April low (142.55) during the first week of the month.

Keep in mind, the positive slope in the 50-Day SMA (144.78) suggests the broader trend is bullish as EUR/JPY trades at a 15-year high, but lack of momentum to hold above 149.60 (100% Fibonacci extension) may push EUR/JPY back towards the 148.30 (100% Fibonacci extension), with the next area of interest coming in around the 147.00 (78.6% Fibonacci extension) handle.

Additional Resources:

EUR/USD forecast: monthly low in place ahead of Fed and ECB?

--- Written by David Song, Strategist

DavidJSong