EUR/JPY Price Analysis: Climbs to fresh weekly highs as sellers step in around 136.00

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