EUR/JPY Price Analysis: Approaches the weekly lows around 128.20s

• The shared currency slides against the Japanese yen, down 0.26%.
• The EUR/JPY is neutral-downward biased, though a break under 128.24 would add further downward pressure on the pair.

During the New York session, the EUR/JPY slides 0.40%. At the time of writing, the EUR/JPY is trading at 128.43. A mixed market mood surrounds the financial markets, as depicted by US equity indices trading in the red, except for the Dow Jones, gaining 0.23%.

EUR/JPY Price Forecast: Technical outlook

In the overnight session, the EUR/JPY was subdued around the 50 and the 100-hour simple moving average (SMA), lying at 128.75 and 128.77, respectively. In the overlap of the European and North American session, faced resistance at the abovementioned, followed by a fall towards the daily low at 128.35.

The EUR/JPY daily chart depicts a neutral-downward bias. Although almost flat, the daily moving averages (DMAs) reside above the spot price.

On the downside, the EUR/JPY first support would be January 25 daily low at 128.24. A breach of the latter would expose December 2021, daily lows at 127.51. It is worth noting that a downslope trendline below the latter, part of a falling wedge, might be tested, but it is in the early stages of the pattern.

To the upside, the EUR/JPY first resistance level would be the 50-DMA at 129.27. A test of that level would expose the 100-DMA at 129.89, followed by the 200-DMA at 130.49.