EUR/JPY Price Analysis: Approaches the weekly lows around 128.20s
- The shared currency slides against the Japanese yen, down 0.26%.
- The EUR/JPY is neutral-downward biased, though a break under 128.24 would add further downward pressure on the pair.
During the New York session, the EUR/JPY slides 0.40%. At the time of writing, the EUR/JPY is trading at 128.43. A mixed market mood surrounds the financial markets, as depicted by US equity indices trading in the red, except for the Dow Jones, gaining 0.23%.
EUR/JPY Price Forecast: Technical outlook
In the overnight session, the EUR/JPY was subdued around the 50 and the 100-hour simple moving average (SMA), lying at 128.75 and 128.77, respectively. In the overlap of the European and North American session, faced resistance at the abovementioned, followed by a fall towards the daily low at 128.35.
The EUR/JPY daily chart depicts a neutral-downward bias. Although almost flat, the daily moving averages (DMAs) reside above the spot price.
On the downside, the EUR/JPY first support would be January 25 daily low at 128.24. A breach of the latter would expose December 2021, daily lows at 127.51. It is worth noting that a downslope trendline below the latter, part of a falling wedge, might be tested, but it is in the early stages of the pattern.
To the upside, the EUR/JPY first resistance level would be the 50-DMA at 129.27. A test of that level would expose the 100-DMA at 129.89, followed by the 200-DMA at 130.49.
Author
Christian Borjon Valencia
FXStreet
Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.
