- The EUR/JPY is recovering from Tuesday’s losses and rose 0.38% on Wednesday.
- EUR/JPY: Break above 145.30s could pave the way for further gains.
The EUR/JPY erases some of Tuesday’s losses and clings to gains above the psychological 144.00 figure, after a volatile trading session in Wall Street, following the US Federal Reserve (Fed) decision to hike rates by 50 bps. As the Asian Pacific session begins, the EUR/JPY is trading at 144.60.
EUR/JPY Price Analysis: Technical outlook
The EUR/JPY daily chart suggests the cross is slightly upward biased, though with some risks skewed to the downside. For the cross to extend its weekly gains, the EUR/JPY needs to clear the weekly high reached on December 14 at around 145.34, which would exacerbate a rally toward the November 23 pivot high at 146.13. Once cleared, the next resistance would be the November 9 daily high of 147.11.
EUR/JPY’s failure to clear the weekly high could pave the way for consolidation and a fall toward the week’s lows. The EUR/JPY key support levels would be the 20-day Exponential Moving Average (EMA) at 144.20, followed by the 50-day EMA at 143.97. A breach of the latter would be crucial, exposing 143.17, the current week’s low, which, once removed, will drag prices toward the 100-day EMA at 142.64.
From a momentum point of view, the Relative Strength Index (RSI) suggests that neither buyers/sellers are in charge, with RSI almost flat, nearby 50. However, the Rate of Change (RoC) suggests that buyers are gathering momentum. Therefore, further EUR/JPY upside is expected.
EUR/JPY Key Technical Levels
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