EUR/JPY Price Analysis: Plunges 200-pips and records a fresh two-week low around 135.30s

• The euro weakened vs. the Japanese yen amidst a risk-off mood, and the EUR/JPY fell 1.13%.
• China’s coronavirus outbreak, and Russia-Ukraine jitters, weighed on sentiment.
• EUR/JPY Price Forecast: The pair bias is neutral-upwards, but downside risks remain around 135.27.

On Tuesday, the EUR/JPY dropped to a fresh two-week-low on a second-consecutive risk-off trading session, favoring safe-haven currencies like the JPY, the CHF, and the greenback. At the time of writing, the EUR/JPY is trading at 135.65, near a 200-pip fall.

Dampened market mood boosts the safe-haven yen

US equities remain trading with losses as the New York session end looms. The aforementioned is the reflection of a dampened market mood. China’s coronavirus outbreak that started in Shanghai disseminated to some Beijing districts. Meanwhile, in China’s inner Mongolia, Baotou city imposed a lockdown due to Covid-19 cases. In the Russia-Ukraine conflict, online talks continued, but hostilities remained,

During Tuesday’s overnight session, the EUR/JPY opened shy of the daily highs, around 137.25, and weakened some towards 136.50 but recovered to 137.50. However, once European traders got to their offices, and market sentiment turned sour, the EUR/JPY  nosedived towards the weekly lows at 135.39.

EUR/JPY Price Forecast: Technical outlook

The EUR/JPY remains tilted neutral-upwards from the daily chart perspective. In the last two days, the price action fell shy of April’s 11 daily low at 135.27, a fundamental level. A break of the latter could pave the way for a EUR/JPY move towards April’s 5 swing low at 134.30. However, unless that happens, the bias remains neutral-upwards.

The EUR/JPY’s first resistance would be 136.00. A break above would expose the 137.00 figure, followed by February’s 2020 swing high at 137.50 and the YTD high at 140.00.