EUR/JPY Price Analisis: Erase Wednesday’s gains as bears eye 127.00
|- The shared currency plunges 0.59% vs. the Japanese yen.
- The Ukraine-Russia conflict weighs on severely on the euro.
- EUR/JPY Technical Outlook: Neutral-downward, though once DMAs roll over, the pair might trade to new YTD lows.
EUR/JPY slides for the third time in the week depict the shared currency exposure to the Ukraine-Russia conflict, and while on Wednesday, reached a YTD low at 127.30, bounced and ended near around 128.24, today’s price action erased those gains. At 127.65, the EUR/JPY eyes to end the week with losses.
The market mood in the financial markets is mixed. European equity indices finished the session with losses, and US equity indices carried on the sentiment, though improved slightly as Wall Street’s close looms. In the FX space, the JPY is up so far 0.4% in the pack of the leading peers, while the EUR is the weakest, down 0.52%.
EUR/JPY Price Forecast: Technical outlook
On Thursday, the EUR/JPY seesawed around the daily pivot point during the Asian Pacific session, virtually flat. The European session carried on, but the pair plunged as American traders got to their desks.
The EUR/JPY buried yesterday’s gains and eyes to extend the downtrend further. It is worth noting that the daily moving averages (DMAs) above the spot price reside in a tight range and are about to further roll from a bullish order to a bearish one, where the shorter time-frame ones would be under the longer time frame ones.
The bias of the EUR/JPY is neutral-downward. Failure to remain above January 26 low at 128.24, exacerbated the break of the 128.00 mark. That said, the EUR/JPY first support would be December 20, 2021, low at 127.51. Once cleared, the EUR/JPY following line of defense would be 127.00, a new YTD low once reached.
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