EUR/JPY Price Analysis: Buyers emerge around 138.00 lifting the cross to fresh weekly highs

The EUR/JPY erases its weekly losses and is up 0.50%.
A risk-off impulse was no excuse for the euro to rally against the JPY.
EUR/JPY is neutral-upwards as buyers stepped in, reclaiming the 139.00 mark.

Christian Borjon Valencia FXStreet

The EUR/JPY rises during the North American session, refreshing weekly highs around 139.76, but retreated some as the Wall Street session winds down on Thursday, amidst a dampened investors’ mood, sparked by another US elevated inflation report, in this time, the PPI. At the time of writing, the EUR/JPY is trading at 139.22, gaining 0.78%.

EUR/JPY’s price action portrays the cross, opening near the daily pivot point of the day, around 138.10s, dipping to the daily low at 137.99, before rallying more than 150 pips, hitting a fresh weekly high at the R2 daily pivot at 139.76. After that, the EUR/JPY dipped towards the 139.10 lows but stayed positive in the day, as the EUR/USD is also back above parity at around 1.0020s.

EUR/JPY Daily chart

From a technical perspective, the EUR/JPY shifted from neutral to neutral-upwards as EUR/JPY buyers reclaimed the 50-day EMA around 139.05, as well as breaking above a descending channel, which has opened the door for further upside. EUR/JPY traders should notice that oscillators are aiming higher, particularly the Relative Strength Index (RSI), closing to the 50 line at 47.57.

Therefore, the EUR/JPY path of least resistance is upwards, and its first resistance would be July 6 daily high at around 139.50. Break above will expose the 140.00 figure, followed by a challenge of the 20-day EMA at 140.83. Once cleared, the EUR/JPY’s next resistance would be the July 5 high at 142.37.

EUR/JPY Key Technical Levels

EUR/JPY

Overview
Today last price	139.22
Today Daily Change	1.08
Today Daily Change %	0.78
Today daily open	138.15

Trends
Daily SMA20	140.89
Daily SMA50	139.11
Daily SMA100	136.28
Daily SMA200	133.25

Levels
Previous Daily High	138.8
Previous Daily Low	137.13
Previous Weekly High	142.37
Previous Weekly Low	136.87
Previous Monthly High	144.28
Previous Monthly Low	137.93
Daily Fibonacci 38.2%	138.16
Daily Fibonacci 61.8%	137.77
Daily Pivot Point S1	137.25
Daily Pivot Point S2	136.35
Daily Pivot Point S3	135.57
Daily Pivot Point R1	138.92
Daily Pivot Point R2	139.7
Daily Pivot Point R3	140.6

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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