EUR/JPY Price Analysis: Slides but stays near the 136.00 mark

• The shared currency bulls failed to cling to the 136.00 mark.
• Geopolitical developments in Eastern Europe turned sentiment negative as Russia backpedaled by saying that peace talks have not progressed.
• EUR/JPY Price Forecast: The path of least resistance in the near-term is downward biased.

The EUR/JPY retreats in the North American session, on a risk-off mood trading session to news from Russia’s – Ukraine front, as negotiations have failed to progress, as the French Foreign Minister noted. At the time of writing, the EUR/JPY is trading at 135.95.

The market sentiment turned dismal in the mid-European session, as Russia reported that although Ukraine’s efforts, they noted that there’s has been no breakthrough on it as Russia redeploys troops towards Donbas. That said, alongside Polish Deputy Prime Minister saying that Russia is preparing a new attack in Ukraine confirms the continuation of hostilities.

Aside from this, the EUR/JPY overnight seesawed in a 180-pip range. In the Asian session, the cross-currency pair reached its daily high at 136.66, retracing in the European session as a raft of negative sentiment struck the market, which lifted safe-haven peers, sending the EUR/JPY towards 134.87. Late in the North American session, the shared currency gained traction toward current levels.

EUR/JPY Price Forecast: Technical outlook

The EUR/JPY price action in the last two days shows indecision surrounding the pair. Failure to push above/below Monday’s boundaries keeps the EUR/JPY trapped in the 134.00-137.00 range, though the highs have been lower than each previous trading day in the last two days.

With that said, the EUR/JPY might be heading lower, though it would find some hurdles on its way south. The EUR/JPY first support would be 135.30. A decisive break would expose 134.87, followed by 133.97.

Upwards, the EUR/JPY first resistance would be 136.00. Breach of the latter would expose 136.50, followed by 137.00, and the YTD high at 137.54.

Technical levels to watch