EUR/JPY Price Analysis: Struggles around solid resistance at 139.50, retraces towards 139.00

EUR/JPY trims its weekly gains but remains up around 0.17%.
Investors cheered the US Fed’s dovish commentary, though Thursday’s US GDP would give traders clues about the Fed’s next move.
EUR/JPY Price Analysis: Downward biased; a break below 139.00 would pave the way for further losses.

Christian Borjon Valencia FXStreet

On Wednesday, EUR/JPY climbed towards the intersection of the 20 and 50-day EMAs as the US Fed hiked rates by 75 bps, aligned to market expectations. The EUR/JPY reacted upwards, following the lead of the EUR/USD, which rallied sharply, as the greenback, instead of strengthening, weakened. A slight change in the Fed monetary policy statement, acknowledging that the US economy is “softening,” was cheered by bulls. The EUR/JPY is trading at 139.15, slightly down 0.03% as the Asian session begins.

EUR/JPY Price Analysis: Technical outlook

The EUR/JPY daily chart is neutral-to-downward biased. Wednesday’s jump faced solid resistance around the 20-day EMA at 139.34, though the EUR/JPY hit a daily high at 139.50, retraced below the former, so EUR/JPY sellers remain in charge. Further, the Relative Strength Index (RSI) stayed in negative territory and is still below the 7-day RSI’s SMA. Therefore, the EUR/JPY is subject to additional selling pressure.

EUR/JPY 1-hour chart

The EUR/JPY hourly chart and the daily chart are downward biased. As the Asian session began, the EUR/JPY slipped below the 100-hour EMA at 139.28, paving the way toward 139.00. It’s worth noting that below the latter, the intersection of the 20 and 50-hour EMAs around 138.96 would be difficult support to overcome. If EUR/JPY sellers reclaim the latter, the next support would be the S1 daily pivot point at 138.61. Once cleared, the EUR/JPY’s next support would be the July 26 low at 138.16, followed by the S3 pivot at 137.52.

EUR/JPY Key Technical Levels

Overview
Today last price	139.15
Today Daily Change	0.72
Today Daily Change %	0.52
Today daily open	138.5

Trends
Daily SMA20	139.69
Daily SMA50	139.76
Daily SMA100	137.37
Daily SMA200	133.63

Levels
Previous Daily High	139.84
Previous Daily Low	138.13
Previous Weekly High	142.32
Previous Weekly Low	138.78
Previous Monthly High	144.28
Previous Monthly Low	137.93
Daily Fibonacci 38.2%	138.79
Daily Fibonacci 61.8%	139.19
Daily Pivot Point S1	137.81
Daily Pivot Point S2	137.12
Daily Pivot Point S3	136.1
Daily Pivot Point R1	139.52
Daily Pivot Point R2	140.53
Daily Pivot Point R3	141.23

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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