EUR/JPY Price Analysis: In consolidation hoovering around 131.60s

The common currency rally against the Japanese yen stalled on Monday, courtesy of risk-aversion in the financial markets spurred by the Russia-Ukraine peace talks unable to progress amid global central bank tightening. At 131.61, the EUR/JPY reflects the abovementioned, as the safe-haven yen appreciates.

Wall Street’s finished the day with losses between 0.04% and 1%. Meanwhile, in the FX space, the Loonie rallied against most G8 currencies, while the JPY slightly gained vs. the euro.

Overnight, the EUR/JPY was subdued in the 131.60 area, but in the European session, it jumped towards the 132.00 area, only to find more sellers, which pushed the pair to the 131.40s area.

EUR/JPY Price Forecast: Technical outlook

Daily chart

The EUR/JPY is upward biased, though it faced strong resistance at the 132.00 mark. However, the EUR/JPY might consolidate, as the 78.6% Fibonacci level lies just at 131.28, meaning that the pair might trade in a narrow range before resuming upwards.

Hourly chart

The EUR/JPY 1-hour chart portrays the pair in consolidation, between the 131.00-132.00 range. Above the exchange rate lies the 50-simple moving average (SMA) at 131.61, while the 100 and the 200-SMA lie at 131.09 and 129.86, respectively. The EUR/JPY is upward biased, though downside risks remain.

If the cross-currency pair is going upwards, the first resistance would be the 50-SMA at 131.61. Breach of the latter would expose 132.00, followed by 132.50. On the flip side, the EUR/JPY first support would be the 78.6% Fibonacci level at 131.28. Once cleared, the next support could be the 100-SMA at 131.09, followed by the 131.00 mark. A sustained break would expose the area of the 200-SMA at 129.86 and the 130.00 mark.