EUR/JPY Price Analysis: The rally stalls at 132.00 though upside risks remain

The EUR/JPY weekly rally persists for the fourth consecutive day, up 2.83% as the Asian session is about to begin. The financial market mood reflects an upbeat market mood, though of late, news citing a US intelligence official saying that “Putin is likely to make nuclear threats if the war drags” caused some nervousness on market players, though not enough to spur a sell-off on equities. At the time of writing, the EUR/JPY is trading at 131.54.

Overnight, the EUR/JPY seesawed around the 131.00 mark, though break upwards once North American traders got to their desks, and reached a new YTD high at 131.90, retreating afterward towards 131.50s.

EUR/JPY Price Forecast: Technical outlook

The EUR/JPY achieved to break above the 78.6% Fibonacci retracement, which sat at 131.27 and left the Japanese yen vulnerable to further weakness, which indeed happened. The EUR/JPY rallied short the 132.00 figure, though retreated and is trading above 131.52 Thursday’s close.

The EUR/JPY path of least resistance is upwards, and the first resistance would be 132.00. Breach of the latter would expose the downslope trendline around the 132.70-80 area, followed by the February 10 at 133.15.