EUR/JPY Price Analysis: Dark cloud cover emerges, threatening to drag Euro’s price lower

Dark cloud cover in the EUR/JPY daily chart suggests a pullback could be underway.
EUR/JPY sellers are losing momentum as oscillators shifted neutral.

Christian Borjon Valencia FXStreet

The EUR/JPY retraced Wednesday’s gains on Thursday, as the pair formed a dark cloud cover. The two-candlestick chart pattern suggests the pair could be headed downwards, but a daily close below 147.02 is needed to confirm the chart pattern. As Friday’s Asian session begins, the EUR/JPY is trading at 147.25, registering minuscule gains of 0.04%.

EUR/JPY Price Action

EUR/JPY has managed to extend its rally past the 147.00 area, reaching a YTD high at 147.86; it retreated to the 147.20 area as oscillators turned flat, suggesting buyers are losing momentum. In addition, a forming dark cloud cover could open the door to test 147.00, a crucial area for buyers/sellers, which, once cleared, the latter will eye the 20-day Exponential Moving Average (EMA) at 145.52 as the first support to test.

If the EUR/JPY resumes downwards after challenging 145.52, the following support should be the psychological 145.00 figure, followed by the 50-day Exponential Moving Average (EMA) at 144.15.

On the other hand, if EUR/JPY stays above 147.00, that could pave the way for further upside. The EUR/JPY key resistance areas lie at the YTD high of 147.86, followed by the 148.00 mark. Break above; the EUR/JPY will challenge the 2022 high at 148.40.

EUR/JPY Daily Chart

EUR/JPY

Overview
Today last price	147.21
Today Daily Change	-0.38
Today Daily Change %	-0.26
Today daily open	147.59

Trends
Daily SMA20	144.55
Daily SMA50	143.72
Daily SMA100	142.67
Daily SMA200	142.2

Levels
Previous Daily High	147.86
Previous Daily Low	147.04
Previous Weekly High	147.16
Previous Weekly Low	143.8
Previous Monthly High	145.67
Previous Monthly Low	138.83
Daily Fibonacci 38.2%	147.55
Daily Fibonacci 61.8%	147.36
Daily Pivot Point S1	147.14
Daily Pivot Point S2	146.68
Daily Pivot Point S3	146.32
Daily Pivot Point R1	147.95
Daily Pivot Point R2	148.32
Daily Pivot Point R3	148.77

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.

AUD/USD sits at three-week highs above 0.7000 on hawkish RBA-speak

AUD/USD holds a positive bias for the fourth straight day, trading above 0.7000 in the Asian session on Wednesday and at three-week highs. RBA Deputy Governor Andrew Hauser's hawkish remarks and inflation concerns underpin the pair. However, the upside appears capped as the US Dollar attracts some buyers amid looming US-Iran uncertainty.

USD/JPY remains confined in a familiar range below 158.50

USD/JPY sees some dip-buying in the Asian session on Wednesday, though it remains confined within a multi-week range near 158.50 as the uncertainty over the timing of the next BoJ rate hike keeps Japanese Yen bulls on the defensive. Meanwhile, hawkish Fed expectations, bolstered by inflation risks stemming from volatile oil prices, underpin the US Dollar. However, looming intervention fears could limit JPY losses and cap the currency pair.

Gold bounces off weekly low; Fed hike bets and modest USD recovery keep upside limited

Gold recovers slightly from the weekly low, around the $4,100 neighborhood, though the upside potential seems limited amid a bearish fundamental backdrop. Inflation risks stemming from volatile oil prices underpin prospects for further policy tightening by the US Federal Reserve. Furthermore, a modest US Dollar recovery from a near three-week low could contribute to capping bullion.

Zcash's bullish reversal eyes $1,698 peak on NU7 upgrade

Zcash (ZEC) shows signs of bullish recovery above $1,200 on Wednesday, following a 9% rebound the previous day linked to the upcoming NU7 upgrade. Blockworks released a Zcash holders report on Tuesday, highlighting steady network growth. The technical outlook for ZEC is bullish, with bulls eyeing an extended rally toward $1,698.

US – Midterm update: Pre-election tail risk scenarios

With two weeks until the US midterm elections on 3 November, early voting has already opened in more than 40 states. Prediction markets are broadly unchanged since we published our Midterm update, 13 October. The prediction market Polymarket continues to see Democrats winning both chambers as the most likely outcome, with a 62.5% probability.

The US Dollar fell. Gold didn't rally. That tells you everything

Gold (XAU/USD) is struggling to capitalize on a weaker US Dollar (USD), after repeatedly failing to establish itself above the $4,200 level. The precious metal remains confined to a relatively narrow trading range despite a combination of developments that would normally support higher prices.