- The shared currency falls against safe-haven pairs such as the dollar and the yen on the problems of Russia and Ukraine.
- EUR/JPY: Consolidating around the 134.50-135.30 area, no trend.
The pair EUR/JPY falls in the American session, following the tracks of the EUR/USD, which also falls below 1.1000, as Germany and France expel Russian diplomats from their embassies in response to the Ukrainian genocide. At time of writing, EUR/JPY is trading at 134.74, near daily lows.
European and US equities reflect a positive mood in the market. However, in the currency space, the continuation of the Russo-Ukrainian war weighs on the shared currency and benefits safe-haven pairs such as the dollar and Japanese yen.
Overnight EUR/JPY traded around the 135.00 area and at some point in the mid-European session hit a daily high above 135.50, followed by a drop towards 134.70 from the mid-American session as geopolitical jitters continue. the euro under pressure.
EUR/JPY Price Analysis: Technical Outlook
Even though EUR/JPY is falling, it found some buyers near the 134.50 highs, as the price action of the last three days shows. However, the size of the wicks at the top of the candlesticks indicate that selling pressure remains in the 135.30-137.50 area, which would be a troublesome resistance area for EUR bulls to overcome.
To the upside, the first resistance on the EUR/JPY would be 134.87, which, once cleared, would expose 135.00, followed by 135.30.
On the other hand, the first bid zone for the EUR/JPY would be 134.50. A decisive break would expose 134.05, followed by the daily high of 133.48.05 on Oct 20, 2021.
Technical levels
Source: Fx Street
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
