• EUR/JPY rallied 0.50%, trimming its weekly losses to 0.09%.
  • A risk-on impulse capped the EUR/JPY rally above 136.40.
  • In the near term, the EUR/JPY is neutral-upward, but a break below 136.00 will expose the pair to selling pressure.

The EUR/JPY begins the Asian session slightly up, extending its gains to three days in a row. On Wednesday, the cross-currency hit a daily high at 136.42 but retraced and closed the trading session around 136.05, gaining 0.50%. At the time of writing, the EUR/JPY is trading at 136.09.

Investors sentiment is upbeat after snapping a two-day drop. US equities registered solid gains between 1.29% and 2.73%. Meanwhile, Asian stock markets prepare for a higher open, while the EUR/JPY sellers remain hopeful as the USD/JPY slides, thus strengthening the yen.

EUR/JPY Price Analysis: Technical outlook

The EUR/JPY daily chart illustrates a neutral bias. Though buyers regained some control in the last couple of days, resistance ahead with the 100-day EMA at 137.83 and July’s 8 low shifted resistance at 136.85 would be difficult hurdles to pass, as buyers target a re-test of the July 21 high at 142.32.

Upside, the EUR/JPY first resistance will be 136.42. Break above will pave the way for further gains ahead of the 100-day EMA. On the other hand, the EUR/JPY path of least resistance is downwards, further cemented by the RSI sitting in bearish territory, beginning to aim lower. So a breach below 136.00 could send the pair sliding towards 135.00.

EUR/JPY 1-hour chart

The EUR/JPY 1-hour chart is neutral-to-upward biased, but the cross faces resistance at a 13-day-old downslope resistance trendline near the exchange rate. Nevertheless, the Relative Strength Index (RSI) is in bullish territory but crossed under its RSI’s 7-hour SMA and is aiming lower, meaning a drop towards the confluence of the 20-hour EMA and the daily pivot point at 135.82 is on the cards.

Therefore, the EUR/JPY first support would be 135.82. Once cleared, sellers’ next support will be the confluence of the 50-hour EMA and the S1 pivot at 135.13, followed by the August 2 low at 134.82.

EUR/JPY Key Technical Level

EUR/JPY

Overview
Today last price 136.09
Today Daily Change 0.67
Today Daily Change % 0.49
Today daily open 135.43
 
Trends
Daily SMA20 138.5
Daily SMA50 139.87
Daily SMA100 137.78
Daily SMA200 133.73
 
Levels
Previous Daily High 135.43
Previous Daily Low 133.4
Previous Weekly High 140.08
Previous Weekly Low 135.55
Previous Monthly High 142.43
Previous Monthly Low 135.55
Daily Fibonacci 38.2% 134.65
Daily Fibonacci 61.8% 134.17
Daily Pivot Point S1 134.07
Daily Pivot Point S2 132.72
Daily Pivot Point S3 132.04
Daily Pivot Point R1 136.1
Daily Pivot Point R2 136.78
Daily Pivot Point R3 138.13

 

 

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