EUR/JPY Price Analysis: Hovers around 139.00 amid a mixed-market mood

The Japanese yen trims some of Tuesday’s losses and forms an inverted hammer in an uptrend, usually a signal that means price exhaustion, after a 210-pip steeper rally. As the Asian Pacific session begins, the EUR/JPY is trading at 139.03 at the time of writing.

The market sentiment is mixed as the Asian session begins

The market sentiment is mixed. Most US equities finished Wednesday session with gains while Asian stock futures point to a lower open. The Japanese yen recovered some ground against most of the G8 majors, but in the case of the EUR/JPY, its gains amounted to 0.21%.

On Wednesday, the EUR/JPY opened near the YTD highs around 139.50s, to then fall on the back of profit-taking due to the slight decline in the price, which pulled the EUR/JPY to record a daily low at 138.39.

EUR/JPY Price Forecast: Technical outlook

The EUR/JPY daily chart depicts the pair as upward biased. The daily moving averages (DMAs) below the spot price confirm the aforementioned, but oscillators suggest a correction dip might lie ahead. The Relative Strength Index (RSI) signals the pair as overbought at 71.64, and unless RSI drops below 70, the chances of resuming upwards decrease.

Meanwhile, the EUR/JPY 1-hour chart depicts the pair as upward biased and sits near Thursday’s daily pivot at 138.94. Furthermore, it broke a trendline, 10-pips above the 50-hour simple moving average (SMA) at 132.62, paving the way for further gains.

With that said, the EUR/JPY’s first resistance would be the daily pivot at 138.94. A break above would expose 139.28, followed by the R1 daily pivot at 139.50 and then the YTD high at 139.67