EUR/JPY Price Analysis: Faces wall of resistance around the 20/100 DMA
- On Monday, the EUR/JPY registered minimal gains of 0.14%.
- EUR/JPY daily chart depicts the pair as neutral-to-downward biased; however, a break above 137.92 could shift the bias.
- Short term, the EUR/JPY is neutral-to-upwards, but breaks below 137.06, shift the bias to neutral.
The EUR/JPY seesaws as the Asian Pacific session begins, just below the confluence of the 20 and 100-day EMA, around 137.99-138.19 area, amidst fragile sentiment, as shown by Asian equity futures set to open lower, while US equities closed mixed. At the time of writing, the EUR/JPY is trading at 137.62, slightly up 0.02%.
EUR/JPY Price Analysis: Technical outlook
From a daily chart perspective, the EUR/JPY is bearish biased. Successions of lower highs/lows, alongside daily EMAs above the exchange rate, confirm those above. Also, sellers are gathering momentum, per the Relative Strength Index (RSI) shows, at 46.05, with an almost horizontal slope, but still in negative territory. Therefore, the EUR/JPY's first support would be the August 8 daily low at 137.06. A break below could pave the way towards 135.80 August 5 low, exacerbating further downside action. On the flip side, the EUR/JPY's first resistance would be the August 8 high at 137.92.
Meanwhile, the EUR/JPY hourly chart portrays an opposite bias to the daily chart, neutral-to-upwards. Factors like the hourly EMAs, below the exchange rate, alongside the Relative Strength Index (RSI) at bullish territory, back up the bias.
Therefore, the EUR/JPY's first resistance would be the confluence of the August 8 high and the R1 pivot around 137.92-138.00. A breach of the latter will expose the R2 daily pivot at 138.40, followed by the R3 pivot point at 138.87. On the other hand, a EUR/JPY break below 137.06 might shift the bias to neutral, opening the door for further losses.
EUR/JPY Key Technical Levels
Author
Christian Borjon Valencia
FXStreet
Christian Borjon began his career as a retail trader in 2010, mainly focused on technical analysis and strategies around it. He started as a swing trader, as he used to work in another industry unrelated to the financial markets.
