- The EUR/JPY approaches the top of the 142.50-143.60 range, eyeing a break that could bolster the cross toward 145.00.
- Short term, the EUR/JPY is neutral biased, but recent verbal Intervention by Japanese authorities in the last week bolstered the yen.
On Monday, the EUR/JPY erased last Friday’s losses, though remained trading subdued, amidst an upbeat Wall Street session, with most US equities finishing the day in the green. At the time of writing, the EUR/JPY is trading at 143.62, above the opening price by 0.06%, as the Asian session begins.
EUR/JPY Price Analysis: Technical outlook
The EUR/JPY continues to trade within the 142.50-143.60 range for the third consecutive trading session. Even though buyers reclaimed control, they need a clear break above the top of the range to challenge the psychological 144.00 figure. If that scenario plays out, EUR/JPY traders should be aware that the Relative Strength Index (RSI) exited overbought conditions, with readings of 64, aiming upwards, meaning that the upward move might be capped nearby the YTD highs at 145.63
Short term, the cross-currency pair remains neutral. Even though most of the EMAs reside below the exchange rate, price action in the last three days consolidated to a narrow range, forming a bearish rectangle after the EUR/JPY reached the YTD high at 145.63. Therefore, the EUR/JPY could be headed to the downside, bolstered by technical factors and Japanese authorities’ verbal intervention in the FX markets.
Therefore, the EUR/JPY first support would be the 20-EMA at 143.17. Break below will immediately expose the S1 pivot at 143.00, followed by the S2 daily pivot at 142-49.
EUR/JPY Key Technical Levels
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