EUR/JPY Price Analysis: Back above 143.00 as buyers target the YTD high, despite a double top
|- On Monday, the EUR/JPY is advancing some 0.47%.
- The sentiment is mixed, which helped put a lid on EUR/JPY elevated prices.
- EUR/JPY Price Analysis: The formation of a double top in the daily chart would open the door for further losses.
The EUR/JPY advances for the second consecutive day and is looking to extend to its seven straight week rally, which would lift the cross-currency pair towards fresh yearly highs above 144.25. At 143.29, the EUR/JPY is printing gains of 0.54% at the time of writing.
The optimism generated by the Asian and European sessions faded as the North American session winds down. US equities seesaw between gainers/losers as sentiment shifted mixed, on the back of money managers' portfolio reshuffling on quarter-month end, amidst a jump in global bond yields.
EUR/JPY Daily chart
In the meantime, the EUR/JPY daily chart illustrates a double top formation. Nevertheless, EUR/JPY sellers' failure to drag prices lower, courtesy of an ultra-dovish Bank of Japan, keeps prices elevated and threatening of breaking to new YTD highs.
Additionally, the Relative Strenght Index (RSI) at 60.91 aims higher. Besides that, it just crossed above the RSI 7-day SMA (line in red), indicating that buying pressure is accumulating.
EUR/JPY 1-Hour chart
The EUR/JPY 1-hour chart depicts the cross-currency pair upwards but is about to face solid resistance around the R2 daily pivot point at 143.63. That, alongside June's 23 daily high at 143.67, would be solid ceiling areas to break. Nevertheless, once broken, the EUR/JPY's next resistance is June 22, high at 144.24.
On the flip side, the EUR/JPY first support would be the R1 pivot at 143.12. A break below would expose the confluence of the 20 and the 100-EMAs around the 142.83-97 area. Once cleared, the next support would be the 50-EMA at 142.50.
EUR/JPY Key Technical Levels
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