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.
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
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.
