EUR/JPY Price Analysis: Bears stepped in, eyeing a rest of 136.00

The EUR/JPY is tumbling in the week by some 1.88%.
Selling pressure trips down the EUR/JPY to fresh weekly lows, below 138.00.
The EUR/JPY might achieve a mean reversion move towards 139.00 before aiming towards the 100-day EMA at 136.00

Christian Borjon Valencia FXStreet

The EUR/JPY is almost flat as the Asian Pacific session takes over, up 0.04%, after plunging 0.78% on Wednesday. All that courtesy of a mixed market mood painting a dark economic outlook due to the energy crisis that has the Euro area at the brink of a recession, as Russia squeezes energy supplies to “unfriendly” countries. At the time of writing, the EUR/JPY at 138.40.

Selling pressure trips down the EUR/JPY to fresh weekly lows

US equities finished in the New York session on a higher note. Asian stocks are set to open in negative territory, as illustrated by futures in Asia trading with losses, while safe-haven currencies in the FX market are recording gains.

The EUR/JPY, Wednesday’s open, was near Tuesday’s lows and seesawed through most of the Asian session. However, once the European session took over, EUR/JPY’s sellers stepped in and sent the pair plunging towards a fresh weekly low at around 137.26.

EUR/JPY Daily chart

The EUR/JPY is neutral-upward biased, but the break of the 20 and 50-day EMAs opened the door for sellers, which piled around the 142.50 mark, and at 138.40, July 6 high, spurring EUR/JPY’s losses of 400 pips. A continuation to the downside looms, but a corrective leg towards 139.00 is on the cards.

If that scenario plays out, the EUR/JPY’s first support would be the 138.00 figure. Once cleared, the next support would be the July 6 low at 137.26, followed by the 100-day EMA at 135.92.

EUR/JPY Key Technical Levels

EUR/JPY

Overview
Today last price	138.39
Today Daily Change	-1.05
Today Daily Change %	-0.75
Today daily open	139.44

Trends
Daily SMA20	141.89
Daily SMA50	138.95
Daily SMA100	135.82
Daily SMA200	132.98

Levels
Previous Daily High	142.37
Previous Daily Low	138.95
Previous Weekly High	144.28
Previous Weekly Low	139.79
Previous Monthly High	144.28
Previous Monthly Low	137.93
Daily Fibonacci 38.2%	140.26
Daily Fibonacci 61.8%	141.07
Daily Pivot Point S1	138.14
Daily Pivot Point S2	136.83
Daily Pivot Point S3	134.71
Daily Pivot Point R1	141.56
Daily Pivot Point R2	143.68
Daily Pivot Point R3	144.98

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.

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