EUR/JPY Price Analysis: Hovers around the 50/100-DMAs around 139.00

• On Monday, the EUR/JPY finished the session trading positively, gaining 0.15%.
• The daily chart depicts the pair as neutral-biased.
• Short term, the EUR/JPY  is headed to the downside and might test the 137.00 figure in the near term.

As the Asian Pacific session begins, the EUR/JPY barely drops 0.04%, courtesy of a risk-off impulse, due to increasing recession fears, as central banks continue to tighten monetary policy conditions, while the UK government unveiled a program of tax cuts, aimed to stimulate the already battered economy. At the time of writing, the EUR/JPY is trading at 138.99, below its opening price.

EUR/JPY Price Analysis: Technical outlook

The EUR/JPY tumbled below the confluence of the 50 and 100-day EMA during Monday’s session, influenced by the fall in the GBP/JPY. On its way south, the EUR/JPY reached a fresh monthly low of around 137.36, but a seven-month-old upslope support trendline capped the fall, and the pair bounced toward current spot prices. Even though the Relative Strength Index (RSI) tumbled to negative territory, EUR/JPY’s failure to break below the 200-EMA keeps the neutral bias intact.

In the near term, the EUR/JPY bias turned negative once the exchange rate tumbled below the 200-EMA, while the 20-day EMA dropped under the former, signaling that sellers begin to gather momentum. Additionally, the Relative Strength Index (RSI) at 38, in bearish territory, further cements the downward bias.

Therefore, the EUR/JPY first support would be the daily pivot at 138.65. Break below will expose the S1 pivot at 137.78, followed by the upslope trendline above-mentioned at around 137.00, ahead of the S2 daily pivot at 136.51.

EUR/JPY Key Technical Levels