EUR/JPY Price Analysis: Steady near the 7-year high, hovers around 141.80s
- The shared currency is climbing in the week by 1.17%.
- Market players’ sentiment turned positive, though it could fluctuate at anytime.
- EUR/JPY Price Forecast: Consolidating, but subject to mean reversion due to the size and speed of the rally; might fall to the 140.00s before resuming upwards.

The EUR/JPY is soaring to 7-year highs, to a level last seen in January 2015, at around 142.06, though the euro bulls are taking a breather as the EUR/JPY remains positive below the 142.00 mark. At 141.88, the EUR/JPY reflects investors’ mixed mood as US equities fluctuate.
Investors’ mood is fragile, fluctuating between positive/negative. Of late, US equities shrugged off worries of the global central bank tightening monetary conditions and the possibility of the US reaching a recession.
Tuesday’s EUR/JPY price action witnessed the cross-currency opening around 141.00. Through the end of the Asian-beginning of the European session, the EUR/JPY rallied sharply towards the 7-year high at 142.06, retreating later to the R1 daily pivot point at 141.50.
EUR/JPY Price Forecast: Technical outlook
From the EUR/JPY daily chart perspective, the cross is upward biased. However, the Bollinger’s band, alongside the Relative Strenght Index (RSI) shows that volatility has increased sharply. In fact, the EUR/JPY is in overbought territory, as shown by the RSI above 70, opening the door for a mean-reversion move before resuming the ongoing bias.
In the near-term, the EUR/JPY 1-hour chart depicts the cross consolidating in the high 141.00s, near the 142.00 area, forming a top that could evolve to a double-top chart pattern. Also, the EUR/JPY exerts pressure on the 20-hour simple moving average (SMA), which, once cleared, would send the EUR/JPY falling towards the 50-hour SMA at 140.94. A break below would expose the 100-hour SMA at 140.07.
Key Technical Levels
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.


















