EUR/JPY Price Analysis: A gravestone doji could exacerbate a move towards 131.00

• The common currency has gained 0.30% in the week, vs. the Japanese yen.
• Raising geopolitical tensions could exacerbate a downward move, despite the neutral-upward bias, on the safe-haven status of the JPY.
• EUR/JPY Technical Outlook: Downward bias, confirmed by a “gravestone doji” on the daily chart.

The EUR/JPY advances for the second consecutive day in the week amid a mixed market mood as Russia/Ukraine conflict tension increases. At the time of writing, the EUR/JPY is trading at 131.30

On Wednesday, during the overnight session, the EUR/JPY cross-currency pair rallied towards Pitchfork’s 25% parallel line around the 131.50-60 range, reaching a daily high at 131.89, retreating below the former, end even pushing below the February 15 daily high at 131.58. Therefore, it printed a “gravestone doji,” a candlestick meaning that a EUR/JPY reversal may be on the cards.

EUR/JPY Price Forecast: Technical outlook

Therefore, the EUR/JPY first support level would be the February 16 daily low at 131.10. Breach of the latter will expose a previously broken four-month-old downslope trendline around 130.50-60, followed by the confluence of Pitchfork’s bottom trendline and the 200-day moving average (DMA) at 130.44.

Trend: Downward biased unless the 132.00 level is reclaimed.