EUR/JPY Price Analysis: After hitting 9-year highs, it retreated to 148.20s as sellers stepped in.
- Albeit retracing, the EUR/JPY is still upward biased, with bulls eyeing 150.00.
- Oscillators flashed that EUR/JPY’s buyers are losing momentum.
- The EUR/JPY could be headed for a pullback before rallying towards 150.00.
The EUR/JPY reached a fresh 9-year high at around 148.47, as buyers reclaimed the 148.00 area. However, it has retraced below the last year’s high of 148.40 and meanders above the 148.00 figure as the Asian session begins. At the time of writing, the EUR/JPY trades at 148.21.
EUR/JPY Price Action
The pair remains upward-biased, as shown by the daily chart. Although the EUR/JPY’s uptrend is intact, oscillators have begun to shift neutral, as shown by the Relative Strength Index (RSI). The RSI exited below the 70 area, while the Rate of Change (RoC) indicates the last cycle high was achieved on lower volatility levels, meaning buyers could lose momentum.
If EUR/JPY breaks the YTD high at 148.47, the next resistance would be 149.00. A decisive break could push prices towards the 150.00 figure, followed by the next cycle high on September 22, 2008, at 154.83.
Conversely, if the EUR/JPY drops below the 148.00 figure, the risk of forming a bearish-engulfing candlestick pattern increases. Therefore, the EUR/JPY first support would be the April 24 low of 147.12, followed by the last cycle low of 146.40, before testing the 20-day EMA at 146.01.