EUR/JPY Price Analysis: Yen bulls defended 20-EMA, 141.40 a critical hurdle
|- The eurozone bulls have weakened on failing to cross the 20-EMA.
- Auctioning in a falling channel adds to the downside filters.
- The RSI (14) is attempting to slip below 40.00, which will strengthen the yen bulls further.
The EUR/JPY pair is experiencing stiff resistance from 141.00 in the Asian session. The cross is expected to see more downside after slipping below the intraday low at 141.84. On a broader note, the asset is declining from the past week after sensing offers while testing June 22 high at 144.25.
The asset is declining in a Falling Channel on an hourly scale. The upper and lower portion of the chart pattern is placed from June 29 high and low at 143.86 and 142.49 respectively. For the shared currency bulls, the horizontal resistance at 141.40 will be a critical hurdle.
The 20-period Exponential Moving Average (EMA) at 141.16 has been smoothly defended by the Japanese yen bulls. Also, the 50-period EMA at 141.65 is scaling lower firmly which adds to the downside filers.
Meanwhile, the Relative Strength Index (RSI) (14) is attempting to slide below 40.00, which will strengthen the yen bulls further.
A pullback move towards the critical hurdle of the June 24 low at 141.40 will be a bargain sell for the market participants, which will drag the asset towards June 16 high at 139.96, followed by June 1 high at 138.98.
On the flip side, the shared currency bulls could regain strength if the asset oversteps Wednesday’s low at 142.03. This will drive the asset towards Tuesday’s high at 142.98. A breach of Tuesday’s high will unleash the eurozone bulls to recapture June 22 high at 144.25.
EUR/JPY hourly chart
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