- The EUR/JPY is printing gains of 1.53% in the week.
- The sentiment is mixed and remains fragile due to the global economic outlook.
- EUR/JPY Price Forecast: Double top in the daily chart looms.
The EUR/JPY begins the Asian session on the wrong foot, recording decent losses of 0.13% as market sentiment deteriorates with Asian equity futures mixed. In contrast, US stocks and DAX futures start to trade in the red. At the time of writing, the EUR/JPY trades around the 143.80 area.
A mixed market mood threatens to increase appetite for safe-haven peers, meaning the Japanese yen has the upper hand. Wall Street’s skepticism that Tuesday’s rally means that equities reached a bottom opens the door for further losses. Fed speaking continued, led by Thomas Barkin, Richmond’s Fed President, who said that the Fed should raise rates as fast as it can without triggering a recession in the US.
EUR/JPY Price Forecast: Technical outlook
Daily chart
From a technical perspective, the EUR/JPY might nearly form a double top in the 143.80-144.20s area. Also, traders need to take notice of the Relative Strength Index (RSI), which, although it remains in bullish territory, illustrates that the EUR/JPY’s last two higher highs were printed on RSI’s lower peaks, suggesting that buyers were booking profits.
4-hour chart
The EUR/JPY illustrates the cross as upward biased, based on pure market structure; nevertheless, unless it breaks above the June 8 daily high at 144.25, that would leave the pair exposed to selling pressure.
1-hour chart
The EUR/JPY depicts a negative divergence between the cross-currency price action and the Relative Strength Index (RSI), which is within an overbought territory. However, the EUR/JPY might snap higher for a re-test of the YTD highs around 144.25. If the EUR/JPY buyers fail to break above 144.01, a fall towards the June 21 daily low at 142.00.
Therefore, the EUR/JPY first support would be 143.46. Once broken, the next support would be 143.00. A breach of the latter would tumble the EUR/JPY towards 142.00.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD rises to two-day high ahead of Aussie CPI
The Aussie Dollar recorded back-to-back positive days against the US Dollar and climbed more than 0.59% on Tuesday, as the US April S&P PMIs were weaker than expected. That spurred speculations that the Federal Reserve could put rate cuts back on the table. The AUD/USD trades at 0.6488 as Wednesday’s Asian session begins.
EUR/USD now refocuses on the 200-day SMA
EUR/USD extended its positive momentum and rose above the 1.0700 yardstick, driven by the intense PMI-led retracement in the US Dollar as well as a prevailing risk-friendly environment in the FX universe.
Gold price cautious despite weaker US Dollar and falling US yields
Gold retreats modestly after failing to sustain gains despite fall in US Treasury yields, weaker US Dollar. XAU/USD struggles to capitalize following release of weaker-than-expected S&P Global PMIs, fueling speculation about potential Fed rate cuts.
Ethereum continues hinting at rally following reduced long liquidations
Ethereum has continued showing signs of a potential rally on Tuesday as most coins in the crypto market are also posting gains. This comes amid speculation of a potential decline following FTX ETH sales and normalizing ETH risk reversals.
Australia CPI Preview: Inflation set to remain above target as hopes of early interest-rate cuts fade
An Australian inflation update takes the spotlight this week ahead of critical United States macroeconomic data. The Australian Bureau of Statistics will release two different inflation gauges on Wednesday.