EUR/JPY Price Analysis: Sellers cheer retreat from fortnight-old resistance line near 139.00

• EUR/JPY snaps two-day uptrend while reversing from weekly high.
• Bearish MACD signals, steady RSI adds strength to the pullback moves.
• 61.8% Fibonacci retracement lures sellers, 50-DMA restricts immediate upside.

EUR/JPY takes offers to refresh intraday low around 139.00 heading into Friday’s European session. In doing so, the cross-currency pair extends the early Asian session pullback from a 13-day-old resistance line.

The quote’s weakness also takes clues from bearish MACD signals and steady RSI, not to forget failure to cross the 50-DMA, to keep sellers hopeful.

That said, the pair currently drops towards the 50% Fibonacci retracement (Fibo.)  level of May-June upside, near 138.45.

However, the 61.8% Fibo. surrounding 137.10 and the 137.00 could challenge the EUR/JPY bears afterward.

Even if the pair declines below 137.00, the 100-DMA close to 136.45 could offer the last chance to buyers.

On the contrary, the 50-DMA and aforementioned resistance line, respectively around 139.20 and 139.35, could restrict EUR/JPY recovery.

Following that, the 38.2% Fibonacci retracement level of 139.85 could act as a buffer during the pair’s likely run-up towards the late June swing low around 141.40. it should be noted that the 140.00 psychological magnet also acts as the upside filter.

EUR/JPY: Daily chart

Trend: Further weakness expected