EUR/JPY Price Analysis: Risk-off impulse sent the pair below 145.00

A risk-off impulse kept the EUR/JPY from reaching a fresh YTD high at around the 146.00 psychological figure.
EUR/JPY’s failure to re-test the 145.63 sent the pair tumbling below the 145.00 mark.
Short term, the EUR/JPY might be headed downwards, but upside risks remain once the pair clears 145.00.

Christian Borjon Valencia FXStreet

The EUR/JPY opens Wednesday’s Asian Pacific session with decent gains of 0.24%, after Tuesday’s 0.34% loss, courtesy of a risk-off impulse when data from the US flashed inflation decelerating less than estimates, fueling possibilities for a US Fed 75 bps rate hike. At the time of writing, the EUR/JPY is trading at 144.41.

EUR/JPY Price Analysis: Technical outlook

On Tuesday, the EUR/JPY rallied towards the new YTD high reached on Monday at 145.63 but fell short and dived below the 145.00 figure. That, alongside a minimal negative divergence between the EUR/JPY price action and the RSI, could open the door for a fall towards the September 12 daily low at 143.37, ahead of the 143.00 figure.

Short term, the EUR/JPY is neutral-to-downward biased. Even though a negative divergence emerged, EUR/JPY consolidated in the 144.15-145.00 range, with the 20-EMA at 144.15, being the first demand zone, which, once cleared, would pave the way for further losses.

If the above scenario plays out, the EUR/JPY’s next support would be the confluence of the 50-EMA and the daily pivot at around 142.14/19. Break below will expose the 100-EMA at 139.98, ahead of the S1 daily pivot at 139.67.

On the other hand, if the EUR/JPY clears the September 13 high at 145.37, a YTD high re-test is on the cards.

EUR/JPY Key Technical Levels

EUR/JPY

Overview
Today last price	144.41
Today Daily Change	-0.18
Today Daily Change %	-0.12
Today daily open	144.61

Trends
Daily SMA20	139.24
Daily SMA50	138.52
Daily SMA100	138.69
Daily SMA200	134.97

Levels
Previous Daily High	145.64
Previous Daily Low	143.1
Previous Weekly High	144.72
Previous Weekly Low	138.69
Previous Monthly High	139.73
Previous Monthly Low	133.4
Daily Fibonacci 38.2%	144.67
Daily Fibonacci 61.8%	144.07
Daily Pivot Point S1	143.26
Daily Pivot Point S2	141.92
Daily Pivot Point S3	140.73
Daily Pivot Point R1	145.8
Daily Pivot Point R2	146.98
Daily Pivot Point R3	148.33

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.

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