- EUR/JPY stages a comeback and hits a three-day new high at 141.97, shy of the 142.00 mark.
- EUR/JPY Price Analysis: Sideways awaiting a catalyst to gather direction.
The Euro (EUR) is recovering some ground against the Japanese Yen (JPY), as the Wall Street close looms, after hitting two-week lows of 140.55, though it staged a comeback and traveled back to the day’s high at 141.97. At the time of writing, the EUR/JPY exchanges hands at 141.50, above its opening price.
EUR/JPY Price Analysis: Technical outlook
After rallying from the January 19 daily low of 137.91 towards the January 25 daily high of 142.29, the USD/JPY remains trapped in a 250 pip range within the 140.75-142.39 range for the last five days. Furthermore, the 20-day Exponential Moving Average (EMA) at 140.94 and the 50-day EMA at 141.70 acted as the support/resistance of the range. Therefore, the EUR/JPY is trendless amid the lack of a catalyst.
Oscillator-wise, the Relative Strength Index (RSI) at bullish territory backed today’s price action, contrary to the Rate of Change (RoC), which indicates sellers are beginning to gather momentum.
Therefore, the EUR/JPY first resistance would be the 50-day EMA at 141.70 and might rally once broken. The next resistance would be the 142.00 psychological level, ahead of the Wednesday 25 high at 142.29, followed by the 143.00 figure.
In an alternate scenario, if the USD/JPY pair breaks downwards, it would expose key support levels. First, the 20-day EMA at 140.94, followed by the 200-day EMA at 140.24, and then the psychological 140.00 mark.
EUR/JPY Price Analysis
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