EUR/JPY Price Analysis: Plunges 200-pips and records a fresh two-week low around 135.30s

The euro weakened vs. the Japanese yen amidst a risk-off mood, and the EUR/JPY fell 1.13%.
China’s coronavirus outbreak, and Russia-Ukraine jitters, weighed on sentiment.
EUR/JPY Price Forecast: The pair bias is neutral-upwards, but downside risks remain around 135.27.

Christian Borjon Valencia FXStreet

On Tuesday, the EUR/JPY dropped to a fresh two-week-low on a second-consecutive risk-off trading session, favoring safe-haven currencies like the JPY, the CHF, and the greenback. At the time of writing, the EUR/JPY is trading at 135.65, near a 200-pip fall.

Dampened market mood boosts the safe-haven yen

US equities remain trading with losses as the New York session end looms. The aforementioned is the reflection of a dampened market mood. China’s coronavirus outbreak that started in Shanghai disseminated to some Beijing districts. Meanwhile, in China’s inner Mongolia, Baotou city imposed a lockdown due to Covid-19 cases. In the Russia-Ukraine conflict, online talks continued, but hostilities remained,

During Tuesday’s overnight session, the EUR/JPY opened shy of the daily highs, around 137.25, and weakened some towards 136.50 but recovered to 137.50. However, once European traders got to their offices, and market sentiment turned sour, the EUR/JPY nosedived towards the weekly lows at 135.39.

EUR/JPY Price Forecast: Technical outlook

The EUR/JPY remains tilted neutral-upwards from the daily chart perspective. In the last two days, the price action fell shy of April’s 11 daily low at 135.27, a fundamental level. A break of the latter could pave the way for a EUR/JPY move towards April’s 5 swing low at 134.30. However, unless that happens, the bias remains neutral-upwards.

The EUR/JPY’s first resistance would be 136.00. A break above would expose the 137.00 figure, followed by February’s 2020 swing high at 137.50 and the YTD high at 140.00.

EUR/JPY

Overview
Today last price	135.65
Today Daily Change	-1.53
Today Daily Change %	-1.11
Today daily open	137.27

Trends
Daily SMA20	136.4
Daily SMA50	132.61
Daily SMA100	131.24
Daily SMA200	130.59

Levels
Previous Daily High	139.19
Previous Daily Low	136.49
Previous Weekly High	140
Previous Weekly Low	136.45
Previous Monthly High	137.54
Previous Monthly Low	124.39
Daily Fibonacci 38.2%	137.52
Daily Fibonacci 61.8%	138.16
Daily Pivot Point S1	136.11
Daily Pivot Point S2	134.94
Daily Pivot Point S3	133.4
Daily Pivot Point R1	138.81
Daily Pivot Point R2	140.36
Daily Pivot Point R3	141.52

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.

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