EUR/JPY Price Analysis: Eases after four-week high on low volume trading, risk-on impulse

EUR/JPY slips from a four-week high of 151.07, with US debt ceiling developments cushioning the fall amidst Japanese Yen strength.
Bullish technical indicators hint at a potential upward trajectory for EUR/JPY, placing the YTD high of 151.61 within reach despite the current dip.
Surpassing the weekly high of 151.07 could challenge the YTD high, with upside potential at 152.00; initial support rests at 150.00.

Christian Borjon Valencia FXStreet

EUR/JPY retreats after hitting a new four-week high of 151.07, down 0.26% during the day amidst thin liquidity conditions, sponsored by holidays in Europe and the United States (US). Positive news about the US debt ceiling improved appetite, capping the EUR/JPY’s fall amidst the Japanese Yen (JPY) strength during the day. At the time of writing, the EUR/JPY is trading at 150.34.

EUR/JPY Price Analysis: Technical outlook

The daily chart shows that the EUR/JPY is upward biased, though, in Monday’s session, the cross-currency pair dipped below the May 3 high-turned-support at 150.39 and later reclaimed the latter. Although aiming downward, the Relative Strength Index (RSI) stays in the bullish territory, while the 3-day Rate of Change (RoC) persists above the neutral line. That said, the EUR/JPY in the near-term warrants further upside, which could put the year-to-date (YTD) high of 151.61 in danger.

If EUR/JPY buyers reclaim the weekly high of 151.07, a test of the YTD high of 151.61 is on the cards. The upside risks lie at 152.00. Conversely, the EUR/JPY first support would be 150.00, but further losses are expected on a drop below the latter at around the 20-day Exponential Moving Average (EMA) at 149.09.

EUR/JPY Price Action – Daily chart

EUR/JPY

Overview
Today last price	150.38
Today Daily Change	-0.44
Today Daily Change %	-0.29
Today daily open	150.82

Trends
Daily SMA20	148.95
Daily SMA50	146.63
Daily SMA100	144.4
Daily SMA200	143.66

Levels
Previous Daily High	150.94
Previous Daily Low	149.79
Previous Weekly High	150.94
Previous Weekly Low	148.84
Previous Monthly High	150.44
Previous Monthly Low	142.55
Daily Fibonacci 38.2%	150.5
Daily Fibonacci 61.8%	150.23
Daily Pivot Point S1	150.1
Daily Pivot Point S2	149.38
Daily Pivot Point S3	148.96
Daily Pivot Point R1	151.24
Daily Pivot Point R2	151.66
Daily Pivot Point R3	152.38

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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