EUR/JPY Price Analysis: Reclaims 140.00, after tumbling to new monthly lows below 139.00
|- EUR/JPY reached a fresh monthly low at around 138.70, though it trimmed some losses.
- Sellers in the EUR/JPY daily and 4-hour chart are gathering momentum, as shown by the RSI.
- EUR/JPY Price Analysis: in the 4-hour chart, a break below 140.00 could pave the way toward 138.00.
The EUR/JPY dropped to fresh monthly lows at around 138.70, though a confluence of moving averages (MAs), namely the 50 and 100-day EMA meandering around the 139.16/19 area, were difficult hurdles to surpass, while bulls moving in helped to re-conquer the 140.00 psychological level. As the Asian Pacific session begins, the EUR/JPY is trading at 140.13, up by 0.11%.
EUR/JPY Price Analysis: Technical outlook
On Thursday, the cross-currency pair seesawed in a 500 pip range as the Bank of Japan (BoJ) intervention in the USD/JPY sent most yen crosses nosediving sharply. Even though the EUR/JPY remains above the 50 and 100-day EMAs, oscillators, particularly the Relative Strength Index (RSI), fell to negative territory, suggesting that sellers are gathering momentum.
The GBP/JPY four-hour chart shows the 20-EM crossing under the 50 and 100-EMAs, keeping the downward bias intact, though failure to record a daily close below the 200-EMA, staying above 139.98, opened the door towards 140.00. Albeit the EUR/JPY is trading above 140.00, risks are skewed to the downside, as the RSI persists in negative territory, alongside buyers needing to step in and lift prices above the 141.00 price level.
Therefore, the EUR/JPY first support would be the 140.00 figure. Once cleared, the next support would be the 200-EMA at 139.70, followed by the 139.00 psychological level, ahead of the S1 pivot at 138.00. On the flip side, the EUR/JPY first resistance would be the daily pivot at 140.81. The break above will immediately expose the 141.00 figure, which, if cleared, could pave the way toward 142.00.
EUR/JPY Key Technical Levels
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