EUR/JPY Price Analysis: Falls to weekly lows but soars towards 139.50s on risk-off mood

The euro recovered some ground vs. the Japanese yen amidst the scenario of Japanese authorities intervening in the FX markets.
EUR/JPY Price Analysis: The bounce at weekly lows might open the door for a re-test of 142.00.

Christian Borjon Valencia FXStreet

The EUR/JPY is paring some of Thursday’s losses as the Asian session begins and is posting decent gains of 0.22%. At the time of writing, the EUR/JPY is trading at 139.62.

The market mood remains negative. On Wednesday afternoon, the US Federal Reserve hiked rates by 0.75%, opening the door for further hikes. Also, the Bank of England (BoE) and the Swiss National Bank (SNB) followed suit, hiking 0.25% and 0.50%, respectively. That, alongside dismal US housing data, reignited recession fears on the traders’ minds.

Reflecting the abovementioned were US equities tumbling between 3 and 5 percent. Asian futures are trading in the red, meaning bourses get ready for a lower open.

EUR/JPY Price Analysis: Technical outlook

The EUR/JPY daily chart illustrates the pair as upward biased. Even though Thursday’s price action recorded a fresh weekly low at around 137.84, the pair bounced off weekly lows and settled around the 139.40-60 area.

The EUR/JPY’s 4-hour chart illustrates that the pair broke below the bullish flag and aimed lower towards 137.84 weekly lows, at around the 200-4H simple moving average (SMA). Nevertheless, the EUR/JPY surged towards the 100-4H SMA at around 139.62, a difficult dynamic resistance level, on its way towards a re-test of June 12 highs at around 141.73.

Hence, the EUR/JPY is upward biased. That said, the EUR/JPY’s first resistance would be June 16 high at 139.95. Break above would expose the R1 daily pivot at 140.74. Once cleared, the EUR/JPY’s next resistance would be 50-4H SMA at 141.33, followed by the aforementioned June 12 high.

Key Technical Levels

EUR/JPY

Overview
Today last price	139.62
Today Daily Change	-0.21
Today Daily Change %	-0.15
Today daily open	139.83

Trends
Daily SMA20	138.89
Daily SMA50	137.5
Daily SMA100	134.22
Daily SMA200	132.08

Levels
Previous Daily High	141.5
Previous Daily Low	139.53
Previous Weekly High	144.25
Previous Weekly Low	139.84
Previous Monthly High	138.32
Previous Monthly Low	132.66
Daily Fibonacci 38.2%	140.28
Daily Fibonacci 61.8%	140.75
Daily Pivot Point S1	139.08
Daily Pivot Point S2	138.32
Daily Pivot Point S3	137.12
Daily Pivot Point R1	141.04
Daily Pivot Point R2	142.25
Daily Pivot Point R3	143.01

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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