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
Christian Borjon began his career as a retail trader in 2010, mainly focused on technical analysis and strategies around it. He started as a swing trader, as he used to work in another industry unrelated to the financial markets.
