EUR/JPY Price Analysis: Extends bounce off golden Fibonacci ratio towards 141.50
- EUR/JPY grinds higher around intraday top during the first positive day in three.
- Successful rebound from 61.8% Fibonacci retracement, ascending trend line from August 2022 lures buyers.
- Oscillators appear less lucrative as 100-DMA, short-term resistance line challenge immediate upside.
- Limited upside expected; bulls may remain cautious below 145.20.
EUR/JPY snaps two-day losing streak as it grinds higher past 141.00 during early Monday morning in Europe. In doing so, the cross-currency pair bounces off the 61.8% Fibonacci retracement of its August-October 2022 upside, also known as the golden Fibonacci retracement, as well as extending the rebound from nearly eight-month-old ascending support line.
The recovery moves, however, remain elusive unless crossing the 142.60-75 resistance confluence zone comprising the 100-DMA, descending trend line from March 15 and 38.2% Fibonacci retracement. It’s worth noting that the bearish MACD signals and downbeat RSI also keep sellers hopeful.
Even if the EUR/JPY price rises beyond 142.75, a downward-sloping resistance line from mid-December 2022, close to 145.25, could challenge the bulls.
Following that, the late 2022 peak surrounding 146.75 and the previous yearly peak of 148.40 will be in focus.
On the flip side, the multi-month-old ascending trend line, near 139.65 at the latest, restricts the short-term downside of the EUR/JPY pair before the 61.8% Fibonacci retracement level of 139.15.
It should be observed that the 140.00 round figure acts as an adjacent support while a downside break of 139.15 won’t hesitate to challenge the yearly low marked in January around 137.40
EUR/JPY: Daily chart
Trend: Limited recovery expected
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
