EUR/JPY Price Analysis: Snaps 10-day uptrend, focus on weekly support near 143.50, ECB
- EUR/JPY extends pullback from seven-year high, sellers attack immediate support line.
- Bearish MACD signals, RSI pullback hints at further weakness.
- Ascending trend line from May-end, 100-HMA offer additional downside filters.
- Bulls need to cross double tops to retake control.
EUR/JPY retreats from a seven-year high after consecutive 10 days of bull’s dominance, down 0.35% intraday as bears jostle with a one-week-old support line. In doing so, the cross-currency pair remains pressured around daily lows heading into Thursday’s European session.
Given the RSI pullback from overbought territory, bearish MACD signals and the double tops near 144.20-25, EUR/JPY is likely to break the immediate support near 143.30.
Following that, a downward trajectory towards the 50-HMA and the seven-day-old rising support line, respectively near 142.80 and 142.30, will be in focus.
It’s worth noting that the 100-HMA level of 141.60 acts as the last defense for the short-term EUR/JPY buyers.
Alternatively, fresh buying needs to cross the aforementioned double tops surrounding 144.25 to restore the bull’s confidence.
During the quote’s run-up beyond 144.25, the late 2013 peak near 145.70 could offer an intermediate halt before directing the EUR/JPY buyers towards the year 2014 peak of 149.78.
EUR/JPY: Hourly chart
Trend: Further pullback expected