EUR/JPY Price Analysis: The rally stalls at 132.00 though upside risks remain
- The EUR/JPY has rallied for four consecutive days in the week, eyeing for a fifth one.
- A positive market mood kept safe-haven peers under pressure.
- EUR/JPY Price Forecast: The path of least resistance is upward, though would need a decisive break above 132.00.
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.
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.
