EUR/JPY Price Analysis: Dips from daily highs to 134.70s on Russia/Ukraine jitters

• The shared currency falls against safe-haven peers like the greenback and the yen on Russo-Ukraine woes.
• EUR/JPY Price Analysis: In consolidation around the 134.50-135.30 area, trendless.

The EUR/JPY pair slides as the North American session, following the footprints of the EUR/USD, which also falls, below the 1.1000 mark, as Germany and France expel Russian diplomats from their embassies as a response to the Ukrainian genocide in Bucha. At the time of writing, the EUR/JPY is trading at 134.74, near the day’s lows.

European and US equities reflect a positive market mood. However, in the FX space, the continuation of the Russo-Ukraine war weighs on the shared currency and benefits safe-haven peers, like the greenback and the Japanese yen.

Overnight, the EUR/JPY meandered around the 135.00 area and, at a certain point in the mid-European session, reached a daily high above 135.50, followed by a dip towards 134.70s since the mid-North American session, as geopolitical jitters keep the euro pressured.

EUR/JPY Price Analysis: Technical outlook

Even though the EUR/JPY is falling, it found some buyers near the 134.50s highs, as depicted by the last three days’ price action. Nevertheless, the size of the wicks on top of the candlesticks indicates that selling pressure remains in the 135.30-137.50 area, which would be a problematic resistance area to overcome for EUR bulls.

Upwards, the EUR/JPY’s first resistance would be 134.87, which, once cleared, would expose 135.00, followed by 135.30.

On the flip side, the EUR/JPY’s first demand zone would be 134.50. A decisive break would expose 134.05, followed by October 20, 2021, 133.48.05 daily high.

Technical levels to watch