EUR/JPY Price Analysis: Struggles at 142.00 and drops, extending its losses beneath the 100-DMA
- EUR/JPY stalls its rally and clashes with a confluence of technical indicators.
- A break below the 20-day EMA could pave the way toward the 200-day EMA at 140.24.
- EUR buyers reclaiming 142.00 would set the stage to challenge the 100-day EMA.
The EUR/JPY gained some traction during the Wednesday session and reached a new two-week high at 142.85 before reversing its course and closed at 142.39. As Thursday’s Asian Pacific session begins, the EUR/JPY continues the late downtrend, registering decent losses of 0.14%, and trades at 142.12 at the time of writing.
EUR/JPY Price Analysis: Technical outlook
After piercing the EUR/JPY 50-day Exponential Moving Average (EMA) at 142.50, and the 100-day at 142.21, the cross-currency reversed its course, snapping four days of straight gains. Nevertheless, to resume its downtrend in the short-term, the EUR/JPY needs to clear the 20-day EMA at 141.65, which, once surpassed, the pair could fall towards the 141.00 mark, ahead of the 200-day EMA at 140.24.
The previously-mentioned scenario is backed by oscillators, with the Relative Strength Index (RSI), although at bullish territory, its slope is downwards, about to cross under the 50-midline. In contrast, the Rate of Change (RoC) portrays upside volatility as higher. Therefore, EUR/JPY traders might refrain from opening fresh EUR short positions until the RoC shifts bearish.
As an alternative scenario, if the EUR/JPY resumes its uptrend, key resistance levels are the 100-day EMA at 142.21, followed by the 50-day EMA at 142.50, and then the 143.00 mark.
EUR/JPY 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.
