EURJPY Price Analysis: Reclaims 145.00 after diving below the 50-DMA
- EURJPY reclaims the 145.00 figure on risk aversion.
- If the EURJPY tumbles below the 100-day EMA, a fall toward 142.50s is on the cards.
The EURJPY erased last Tuesday’s losses on Wednesday and rose more than 0.60% amidst a risk-off impulse spurred by a positive Retail Sales report in the United States. Given the jump in sales in the report, speculations that the Federal Reserve (Fed) would continue aggressively tightening augmented, though Fed officials’ commentary, calmed traders. At the time of writing, the EURJPY is trading at 145.01, above its opening price by 0.02%, as the Asian session begins.
EURJPY Price Analysis: Technical outlook
The EURJPY trades shy of the weekly highs reached on Wednesday, around 145.49. Earlier, the EURJPY hit a daily low at 143.56, below the 50-day Exponential Moving Average (EMA) at 143.98, but Euro (EUR) buyers lifted the cross-currency pair, reclaiming the 144.00 and 145.00 psychological price levels. Of note, the Relative Strength Index (RSI) climbed above its 50-midline, showing buyers gathered momentum. However, late in the New York session, RSI’s slope aimed downward, a signal that buying pressure was fading.
Therefore, the EURJPY’s first resistance would be the weekly high at 145.49. Break above will expose the 146.00 psychological level, followed by the 147.00 mark.
On the other hand, the EURJPY’s first support would be the 145.00 mark. Once cleared, the next demand area would be the 50-day EMA at 143.98, followed by the last week’s low at 142.54.
EURJPY 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.
