- EUR/JPY falls from daily highs amid mixed market mood.
- EUR/JPY is facing a wall of resistance around the 130.50-75 zone that would be difficult to break.
- EUR/JPY Technical Outlook: Neutral bias to the downside, as the daily chart shows.
Tuesday’s price action witnessed a short-lived rally in the EUR/JPY above the 200-day moving average (DMA) at 130.76, followed by a pullback due to worsening market sentiment. At the time of writing, the EUR/JPY is trading at 130.26.
Market sentiment is mixed. Global equities take a hit as US and European stock indices post losses, except for the FTSE100, IBEX and Stoxx600. In the forex space, risk sensitive currencies are on the rise, while safe haven pairs are the laggards on the day.
During the overnight session, EUR/JPY remained subdued but recovered as market sentiment improved, stopping around the Pitchfork lending trend line in the 130.70.85 region, near the open of US cash stocks After that, geopolitical headlines increased appetite for the Japanese yen against the shared currency.
EUR/JPY Price Forecast: Technical Outlook
EUR/JPY has a neutral bias. The 200 DMA is still above the price, but the 50 and 100 DMA are 10 pips below it, confirming the above. However, the confluence of a four-month downtrend line, the lower Pitchfork trendline and the 200 DMA justify the neutral bias to the downside as EUR buyers face a wall of resistance levels. to come
That said, the first support level for the EUR/JPY would be the confluence of the 50 and 100 DMAs around the 130.11-19 area. A clear break would expose 130.00, followed by a trip to the Jan 25 low at 128.24.
Additional technical levels
Source: Fx Street
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