EUR/JPY Price Analysis: Subdued around 143.40s, as bulls prepare for an assault to 145.00
- The EUR/JPY is registering gains of 2.22% in the week after facing solid resistance around 143.60.
- EUR/JPY Price Analysis: In consolidation within a 130 pip range circa the 143.00 psychological barriers.
The EUR/JPY hit a fresh weekly high at 143.67 but reversed some of those gains, resting comfortably above Thursday’s high ahead of the weekend. Therefore, the EUR/JPY exchanges hands at 143.40 after dropping to a low of 142.91.
EUR/JPY began the week at around the 200-day Exponential Moving Average (EMA) at 140.32 before rallying sharply towards the 142.38 Tuesday high. Since that day, the EUR/JPY consolidated at around the 142.35-143.65 area, unable to crack either side of the range.
On Friday, the EUR/JPY pierced the top of the range, but buyers unable to hold to its gains, caused a retracement in the pair. Therefore, the EUR/JPY neutral-to-upward bias remains intact.
If the EUR/JPY breaks the top of the range, the next supply area will be 144.00. Once broken, the EUR/JPY might rally and test a five-month-old downslope resistance trendline passing nearby 144.50/60. That could propel EUR/JPY bulls toward the psychological 145.00 barrier.
Contrarily a EUR/JPY fall below 142.30, and the pair might test the 142.00 figure. A breach of the latter will open the door for a move lower to the 141.70/80 area, with the 20, 50, and 100-day EMAs resting inside the range, followed by a fall to the 200*day EMA at 140.44.
EUR/JPY Daily chart
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.
