EUR/JPY Price Analysis: Facing strong resistance around 140.00 and crashing below 139.00

  • The EUR/JPY pair ends the week in the negative, down 0.48%, as the yen shows signs of strength.
  • The deteriorating market mood increases the appetite for haven assets.
  • EUR/JPY Price Analysis: Short-term has a bearish bias, with eyes on a drop below 137.00.

The EUR/JPY slumps from weekly highs hit Thursday at 142.32, down over 160 pips on Friday, towards 138.00 zone, amid muted market mood, which increased appetite for safety, bolstering in FX space , the Japanese yen. At the time of writing, the EUR/JPY is trading at 138.93.

US stocks fell between 0.43% and 1.77% at the close on Wall Street. Social media companies disappointed estimates, and US economic data was lackluster, adding to recession fears. In the currency arena, the USD finished flat on Friday, as the US Dollar Index shows, but fell 1.28%, snapping three straight weeks of gains.

EUR/JPY Price Analysis: Technical Outlook

The EUR/JPY pair continues to have a bullish bias, despite the ongoing pullback from weekly highs at 142.32, towards its lows at 138.89. Traders should note that the cross broke below the 20 and 50 day EMAs, which aggravated the break below 139.00. However, unless EUR/JPY sellers retake the 100-day EMA at 137.06, the uptrend is intact.

EUR/JPY 1 hour chart

The 1 hour chart of EUR/JPY illustrates that once the pair dipped below the lower trend line of the ascending channel next to the 140.42 low of 20 Jul, the bias would change from neutral to bearish in the short term . However, the sellers outperformed the buyers and the pair sank from the 140.00 area to 138.90, breaking the 200 hourly EMA on the way down.

Therefore, the short-term EUR/JPY has a bearish bias. The first support of the EUR/JPY will be 138.50. If it breaks below, the Jul 13 low at 137.99 will be exposed, followed by the Jul 12 low at 137.14.

EUR/JPY Key Technical Levels

EUR/JPY

Panorama
Last Price Today 138.98
Today’s Daily Change -1.55
Today’s Daily Change % -1.10
Today’s Daily Opening 140.53
Trends
20 Daily SMA 140.3
50 Daily SMA 139.54
100 Daily SMA 136.97
200 Daily SMA 133.53
levels
Previous Daily High 142.32
Previous Daily Minimum 140.14
Previous Maximum Weekly 139.89
Previous Weekly Minimum 137.02
Monthly Prior Maximum 144.28
Previous Monthly Minimum 137.93
Daily Fibonacci 38.2% 140.97
Daily Fibonacci 61.8% 141.49
Daily Pivot Point S1 139.67
Daily Pivot Point S2 138.81
Daily Pivot Point S3 137.48
Daily Pivot Point R1 141.86
Daily Pivot Point R2 143.18
Daily Pivot Point R3 144.04

Source: Fx Street

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