EUR/JPY Price Analysis: Multi-year high is short-lived as a bearish engulfing candle pattern emerges

EUR/JPY needs to break below the April 25 low of 146.28 for further downside action.
For a bullish scenario, the EUR/JPY needs to reclaim 147.00 to pave the way towards re-testing 148.00.

Christian Borjon Valencia FXStreet

A bearish-engulfing candle pattern emerges at the EUR/JPY daily chart after the pair hit a new multi-year high at 148.63. However, the EUR/JPY collapsed by more than 150 pips, and as the Asian session begins, the EUR/JPY is trading at 146.79.

EUR/JPY Price Action

After Tuesday's price action, the EUR/JPY is set for a deeper pullback. However, the pair must break below the April 25 low of 146.28 before challenging the 20-day Exponential Moving Average (EMA) at 145.95. As of writing, the EUR/JPY is testing the December 15 daily high at 146.72, previous resistance that turned support, and once it is broken, it could pave the way to the 146.00 mark, ahead of the 20-day EMA.

The next demand area would be the March 31 swing high-turned-support at 145.67, followed by the 145.00 figure, ahead of the 50-day EMA at 144.50.

Conversely, if EUR/JPY buyers reclaim 147.00, that could pave the way towards re-testing 148.00 before challenging the YTD high.

EUR/JPY Daily Chart

EUR/JPY

Overview
Today last price	146.81
Today Daily Change	-1.48
Today Daily Change %	-1.00
Today daily open	148.29

Trends
Daily SMA20	145.48
Daily SMA50	144.11
Daily SMA100	142.83
Daily SMA200	142.32

Levels
Previous Daily High	148.47
Previous Daily Low	147.12
Previous Weekly High	147.86
Previous Weekly Low	146.4
Previous Monthly High	145.67
Previous Monthly Low	138.83
Daily Fibonacci 38.2%	147.96
Daily Fibonacci 61.8%	147.64
Daily Pivot Point S1	147.45
Daily Pivot Point S2	146.61
Daily Pivot Point S3	146.1
Daily Pivot Point R1	148.8
Daily Pivot Point R2	149.31
Daily Pivot Point R3	150.15

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.

AUD/USD rises to 0.6950 as USD slips on Fed's Warsh

AUD/USD regains traction and extends the bounce toward 0.6950 in the Asian session on Friday. Fed Chair Warsh's comments reinforce the selling pressure on the US Dollar, allowing the pair to stretch higher. Warsh said that he remains committed to delivering price stability without giving away anything on future interest rate path.

USD/JPY falls in symc with USD, gives up 158.00 after Warsh's speech

USD/JPY has come under fresh selling pressure and gives up 158.00 in the Asian session on Friday amid the emergence of fresh US Dollar selling. Fed Chair Warsh's non-committal commentary on the future tightening path, weighs on the US Dollar and the pair.

Gold looks vacillating above $4,150

Gold alternates gains with losses below the key $4,200 mark per troy ounce on Friday. The yellow metal’s irresolute price action comes in response to a modest pullback in the US Dollar and a tepid recovery in US Treasury yields across the board.

Bitcoin steadies at $82,000: The five forces crushing the Uptober rally

Crypto markets have remained under pressure so far in October, with Bitcoin (BTC) sliding below $80,000 earlier this week before recovering to around $82,000 on Friday, as macroeconomic headwinds and cooling demand weigh on the market.

The Fed just got a second hot inflation number. Here's what the diesel signal is really saying

The Federal Reserve (Fed) faces a renewed inflation challenge after two consecutive reports showed price pressure intensifying across the US economy. September's Consumer Price Index (CPI) confirmed accelerating consumer inflation, while the Producer Price Index (PPI) revealed an even sharper rise in business costs. Behind both reports lies a common factor: energy prices.

Everyone's dumping Gold after hot US inflation. Here's why $4,100 could be a floor, not a cliff

Gold (XAU/USD) is recovering from a sharp sell-off triggered by hotter-than-expected United States (US) inflation data released on Wednesday. The precious metal briefly plunged toward $4,073 as investors increased their bets on further Federal Reserve (Fed) interest rate hikes before recovering as US Treasury yields and the US Dollar (USD) reversed their initial gains.