EUR/JPY Price Analysis: Rebounds from losses, but technicals point to further downside

EUR/JPY faces stiff resistance as it trades within a busy zone.
Bearish RSI and negative RoC indicate momentum gathering for EUR/JPY sellers.
Upward trend is possible if EUR/JPY remains above 147.50 and tests the 148.00 mark.

Christian Borjon Valencia FXStreet

The EUR/JPY trimmed some of its Tuesdau’s losses on Wednesday, gaining 0.58% as the pair edged above the 147.00 figure. Nevertheless, technical indicators suggest downward action in the EUR/JPY is warranted, trading at 147.39 as the Asian session begins.

EUR/JPY Price Action

The EUR/JPY pair trades within a busy zone of resistance areas. Additionally, printing multi-year highs at around 148.63, it opened the door for a mean reversion move, after a steep advance achieved since the beginning of April, from around 140.00, towards the 148.60s area.

Oscillators like the Relative Strength Index (RSI) at bearish territory continued to edge lower. The Rate of Change (RoC) registers two negative readings out of three days, indicating that sellers are gathering momentum.

Therefore, the EUR/JPY could re-test the weekly lows of 146.28. The cross-currency pair’s first support would be the 147.00 mark. If EUR/JPY cracks the figure, the next support would be 146.28, followed by the 20-day EMA at 146.16, which has been tracking price action, since the start of the month, as a dynamic support.

Conversely, an upward continuation is likely to happen if EUR/JPY holds above 147.50, exacerbating a test of 148.00, before heading toward the multi-year high at 148.63.

EUR/JPY Daily Chart

EUR/JPY

Overview
Today last price	147.45
Today Daily Change	0.67
Today Daily Change %	0.46
Today daily open	146.78

Trends
Daily SMA20	145.72
Daily SMA50	144.19
Daily SMA100	142.86
Daily SMA200	142.34

Levels
Previous Daily High	148.64
Previous Daily Low	146.29
Previous Weekly High	147.86
Previous Weekly Low	146.4
Previous Monthly High	145.67
Previous Monthly Low	138.83
Daily Fibonacci 38.2%	147.19
Daily Fibonacci 61.8%	147.74
Daily Pivot Point S1	145.83
Daily Pivot Point S2	144.89
Daily Pivot Point S3	143.49
Daily Pivot Point R1	148.18
Daily Pivot Point R2	149.58
Daily Pivot Point R3	150.52

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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