EUR/JPY Price Analysis: Seesaws around the confluence of the 20 and 50-day EMAs
- EUR/JPY begins the week on the right foot, up by 0.49%.
- EUR/JPY Price Analysis: Short term is downwards-to-neutral, and a break below 139.47 would tumble the cross towards 138.00.
The EUR/JPY recovers some ground lost last Friday but faces solid resistance at the confluence of the 20 and 50-day EMA around 139.72-74, amidst a risk-off impulse. Sentiment shifted sour on Russia’s Gazprom reducing natural gas flows by half to 20% through Nord Stream 1 pipeline, alongside the Federal Reserve tightening policy by 75 bps late in the week, keeps investors on their toes. At the time of writing, eh EUR/JPY is trading at 139.63.
EUR/JPY Price Analysis: Technical outlook
The EUR/JPY is neutral-to-upward biased, as illustrated by the daily chart. Buyers unable to reclaim the July 21 high at 142.32 left the pair exposed to selling pressure. Further, oscillators like the Relative Strenght Index (RSI) at 48.74 shifted downwards, meaning that Monday’s correction might be a better entry price for EUR/JPY sellers, as they aim to drag prices lower, with their first target being the 100-day EMA at 137.35.
EUR/JPY 1-hour chart
The EUR/JPY hourly chart illustrates the pair as downwards-to-neutral. On Monday, the EUR/JPY buyers could not break above the 200-hour EMA at 139.97 three times. On their third attempt, EUR/JPY sellers stepped in and tumbled the price towards 139.41. Nevertheless, the downtrend lost steam; since then, it settled above the daily pivot point at 139.47.
Therefore, the EUR/JPY first support would be the daily pivot. Once broken, the cross next support would be the S1 daily pivot at 138.587, followed by the July 24 daily low at 138.71, and then the 138.00 mark.
EUR/JPY Key Technical Levels