EUR/JPY Price Analysis: The break of a rising wedge, targets 142.50

The EUR/JPY rises as the Asian session begins after losing 0.53% on Thursday.
EUR/JPY Price Analysis: After breaking below the rising wedge, a fall toward 142.50s is on the cards.

Christian Borjon Valencia FXStreet

The Euro (EUR) fell sharply against the Japanese Yen (JPY), on Thursday, amidst an improved market sentiment, which usually benefits the shared currency. However, traders seeking safety bolstered the latter, sending the EUR/JPY sliding toward the 50-day Exponential Moving Average (EMA) around 144.15. At the time of writing, the EUR/JPY is trading at 144.19, below its opening price by 0.08%.

EUR/JPY Price Analysis: Technical outlook

From a daily chart perspective, the EUR/JPY remains neutral-to-upward biased. However, it should be noted that the rising wedge formed in the EUR/JPY chart was broken on Thursday, which could exacerbate a fall toward the November 11 daily low at 142.54. Another factor to consider is the Relative Strength Index (RSI) turned bearish; hence the EUR/JPY path of least resistance is downward biased.

The EUR/JPY first support would be the 50-day Exponential Moving Average (EMA) at 144.15. A breach of the latter will expose the 144.00 figure, followed by the November 15 daily low at 143.35, ahead of the 142.54 targets. As an alternate scenario, the EUR/JPY first resistance would be the 145.00 mark, which, once cleared, will expose the 146.00 figure. Break above will send the EUR/JPY climbing towards the November 9 swing high at 147.11.

EUR/JPY Key Technical Levels

EUR/JPY

Overview
Today last price	144.41
Today Daily Change	-0.69
Today Daily Change %	-0.48
Today daily open	145.1

Trends
Daily SMA20	145.46
Daily SMA50	144.16
Daily SMA100	141.43
Daily SMA200	138.66

Levels
Previous Daily High	146.14
Previous Daily Low	144.64
Previous Weekly High	145.55
Previous Weekly Low	143.35
Previous Monthly High	148.4
Previous Monthly Low	140.9
Daily Fibonacci 38.2%	145.21
Daily Fibonacci 61.8%	145.56
Daily Pivot Point S1	144.45
Daily Pivot Point S2	143.79
Daily Pivot Point S3	142.95
Daily Pivot Point R1	145.95
Daily Pivot Point R2	146.79
Daily Pivot Point R3	147.45

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.

AUD/USD stays weak above 0.6900 after China’s trade data

AUD/USD struggles to capitalize on the previous day’s recovery and stays defensive on the 0.6900 level following the narrowing of trade surplus in China. Increased December Fed rate hike bets allows the US Dollar to pause its decline and weigh on the pair. US CPI data is next of note for the major.

USD/JPY retakes 158.00 on weak Japanese data; focus shifts to US CPI

USD/JPY attracts some dip-buyers and retakes 158.00 in the Asian session on Tuesday as a fall in Japan’s Household Spending offsets hawkish BoJ Summary of Opinions, undermining the Japanese Yen. Moreover, Fed hike bets support the safe-haven US Dollar and the currency pair. The market focus now shifts to the release of the crucial US CPI report.

Gold drifts lower as traders look to US CPI report for Fed rate cues amid Iran uncertainty

Gold meets with fresh supply, reversing a part of the previous day's strong move up to the $4,150 resistance zone amid a modest US Dollar uptick. Against the backdrop of firming US Federal Reserve rate hike expectations, mixed signals regarding the state of diplomatic talks between the US and Iran offer some support to the safe-haven Greenback. However, USD bulls seem hesitant and opt to wait on the sidelines ahead of US consumer inflation figures.

Bitcoin hits lowest weekly close since August as short-term holders slip into losses

Bitcoin fell below $75,000 on Tuesday, after recording its lowest weekly close since August as selling pressure pushed recent buyers into losses.

This weeks’ two big inflation reports will offer perspective

Payrolls on Friday surprised with a big gain, 165,000 new jobs rather than the 65,000 forecast. Also the unemployment rate fell from 4.2% to 4.1% although average hourly earnings are up only 0.4% ($32.75). This weeks’ two big inflation reports will offer perspective. Tomorrow it’s CPI and on Friday, which is a Friday the 13th, it’s PPI.

Gold reclaimed $4,100. Tuesday’s CPI test decides if it holds

Gold (XAU/USD) starts the week on a positive note, reclaiming the $4,100 psychological level as the US Dollar (USD) retreats from its recent highs. The precious metal recovers from Friday's losses, although investors remain cautious ahead of Tuesday's US Consumer Price Index (CPI) report, which could determine the next direction for Bullion.