- Despite Japanese Authorities’ intervention in the FX markets, the EUR/JPY pair maintains the 150.00 mark.
- Although the EUR/JPY is upward biased, downside risks remain, with sellers eyeing the Kijun-Sen line at 148.87.
- The RSI and the Rate of Change are mixed, warranting caution, despite the EUR/JPY bullish bias.
EUR/JPY advances as the Wednesday Asian session begins after printing two consecutive days of losses, which witnessed the EUR/JPY pair falling from around the 151.00 figure toward the low 150.00s. Factors like a risk-off impulse, and Japanese Authorities’ vocal intervention in the Forex Markets, boosted the Japanese Yen (JPY). At the time of writing, the EUR/JPY exchanges hand at 150.04, almost flat.
EUR/JPY Price Analysis: Technical outlook
The cross-currency pair remains upward biased even though it dipped to the Ichimoku Tenkan-Sen at 149.89, but buyers staying around the area lifted the EUR/JPY to the 150.00 figure. Nevertheless, there’s some weakness on the pair, with two consecutive bearish sessions, suggesting that sellers are moving into the pair, trying to send the EUR/JPY towards the Kijun-Sen line at 148.87, which would exacerbate a drop towards the April 26 daily high of 147.91.
Conversely, the EUR/JPY first resistance would be the peak of the Chikou Span at 150.76, followed by the May 29 daily high at 151.07. A breach of the latter will expose the year-to-date (YTD) high at 151.61.
From an oscillator perspective, the Relative Strength Index (RSI) indicator is still bullish, while the 3-day Rate of Change (RoC) shifted bearishly.
Even though the EUR/JPY is bullishly biased, caution is warranted.
EUR/JPY Price Action – Daily chart
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