• The shared currency collapsed against the Japanese yen, spurred by a downbeat market mood.
  • EUR/JPY Price Forecast: The bias shifted neutral-downwards and would turn downwards if bears pushed the exchange rate below 132.60.

 The EUR/JPY is plunging more than 1.50% on Wednesday, reversing Tuesday’s gains as EUR/JPY bears regained control and pushes the exchange rate below the head-and-shoulders neckline, keeping the pattern in play. At the time of writing, the EUR/JPY is trading at 134.11.

The market sentiment remains negative, carrying on from the European to the whole New York session. Also, EU economic data, particularly inflation figures, rose below than expected and in line with previous readings, easing the prospects of a hawkish European Central Bank (ECB).

In the overnight session, the EUR/JPY opened at around 136.50s and reached a daily high at 136.67 before tumbling 220-pips, breaking below the 50, 100, and 200-hour simple moving averages (SMAs), as sentiment turned sour

EUR/JPY Price Forecast: Technical outlook

On Tuesday, the EUR/JPY bias shifted upwards when the cross-currency pair rallied more than 200-pips. Nevertheless, Wednesday was revenge day for EUR/JPY bears, which caused a drop of more than 220-pips during the day and kept the head-and-shoulders chart pattern in play, which was threatened by Tuesday’s price action.

Albeit the bears are in control, they are not out of the woods yet. A break below 132.65 is needed to increase the possibility of reaching the head-and-shoulders chart pattern target at 130.00.

That said, the EUR/JPY first support would be 134.00. Break below would expose the May 16 daily low at 133.74, followed by May 13 swing low at 133.09 and then the 100-day moving average (DMA) at 132.25, before exposing the 200-DMA at 131.10.

Key Technical Levels

EUR/JPY

Overview
Today last price 134.11
Today Daily Change -0.75
Today Daily Change % -0.55
Today daily open 136.61
 
Trends
Daily SMA20 136.76
Daily SMA50 134.98
Daily SMA100 132.45
Daily SMA200 131.12
 
Levels
Previous Daily High 136.7
Previous Daily Low 134.5
Previous Weekly High 138.32
Previous Weekly Low 132.66
Previous Monthly High 140
Previous Monthly Low 134.3
Daily Fibonacci 38.2% 135.86
Daily Fibonacci 61.8% 135.34
Daily Pivot Point S1 135.17
Daily Pivot Point S2 133.73
Daily Pivot Point S3 132.97
Daily Pivot Point R1 137.37
Daily Pivot Point R2 138.14
Daily Pivot Point R3 139.57

 

 

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