EUR/JPY Price Analysis: Pulls back from 147.00 amidst a late risk-off impulse

The EUR/JPY is almost flat as the Asian Pacific session begins, following Thursday’s session, where the cross-currency pair slid more than 1% due to a risk-off impulse in the FX space. The European Central Bank (ECB) hiked rates by 75 bps, though remained vague about subsequent increases, a headwind for the Euro. Therefore, the Japanese Yen got bolstered and capitalized it. At the time of writing, the EUR/JPY is trading at 145.82, up by 0.03%.

EUR/JPY Price Analysis: Technical outlook

The EUR/JPY daily chart shows the pair retraced some of its weekly gains and is almost flat in the week at +0.13%. However, the uptrend remains intact, even though two Bank of Japan (BoJ) interventions pull back the pair from around 148.00 toward current exchange rates. Though, a formation of a rising wedge, drawn from September/October highs and lows, opens the door for further losses.

For that scenario to play out, sellers must clear the bottom trendline around 145.00, which, once cleared, would expose the 20-day Exponential Moving Average (EMA) at 144.62. A breach of the latter will expose the 50-day EMA, followed by the confluence of October 10 and the 100-day EMA at around 140.69/89. The following support area would be the September 26 cycle low at 137.42.

If the EUR/JPY uptrend resumes, the first resistance would be the October 27 high at 147.69, followed by the YTD high at 148.40. Once cleared, the next resistance would be 150.00.

EUR/JPY Key Technical Levels