The potential for the price of the Euro (EUR/JPY) to decline could be due to a trendline acting as resistance and the bears' inability to hold above it, as well as unfavorable fundamentals.
In technical analysis, a trendline is a straight line that connects two or more price points and is used to identify a current trend in the market. If the price of an asset repeatedly hits the trendline and is unable to break through it, it may indicate that the trend is shifting downward. This is known as resistance.
On the fundamental side, there could be factors such as a strong Japanese yen, economic uncertainty in the Eurozone, and decreasing demand for the Euro that may contribute to a decrease in the price. Additionally, if there are geopolitical tensions or changes in monetary policy, these could also put downward pressure on the value of the Euro.
Overall, both technical analysis and fundamental factors can provide insight into the potential direction of the EUR/JPY price, and a combination of both should be considered when making investment decisions.
In technical analysis, a trendline is a straight line that connects two or more price points and is used to identify a current trend in the market. If the price of an asset repeatedly hits the trendline and is unable to break through it, it may indicate that the trend is shifting downward. This is known as resistance.
On the fundamental side, there could be factors such as a strong Japanese yen, economic uncertainty in the Eurozone, and decreasing demand for the Euro that may contribute to a decrease in the price. Additionally, if there are geopolitical tensions or changes in monetary policy, these could also put downward pressure on the value of the Euro.
Overall, both technical analysis and fundamental factors can provide insight into the potential direction of the EUR/JPY price, and a combination of both should be considered when making investment decisions.