EUR/JPY Price Analysis: Confined to the 134.70-135.15 range on dismal mood

• The uptrend remains in place as long as the EUR/JPY remains above 134.74.
• Tuesday’s price action formed a doji in a downtrend, meaning there’s indecision amongst EUR/JPY traders.
• EUR/JPY Price Forecast: Range-bound, but upside risks remain.

The EUR/JPY keeps extending its losses and giving away the 135.00 mark amidst a dismal market sentiment, courtesy of Ukraine-Russia jitters, central bank tightening, and Fed hawkish commentary, which dragged US equities down. At the time of writing, the EUR/JPY is trading at 134.83.

Since reaching a YTD high at 137.54 on March 28, the EUR/JPY has extended its losses to 300-pips. In the last six trading days, only on two, the cross-currency pair finished in the green, despite the ongoing Japanese yen weakness.

Overnight, the EUR/JPY witnessed a choppy trading session, followed by a dip under 134.50. However, the EUR/JPY reclaimed the former in the mid-European session and reached a daily high ner the 50-hour simple moving average (SMA) at 134.91, retreating afterward to current levels.

EUR/JPY Price Forecast: Technical outlook

The EUR/JPY remains upward biased, despite the ongoing correction. The daily moving averages (DMAs) reside below the exchange rate, further cementing the case for the uptrend. In fact, the 50-DMA, now at 131.00, crossed over the 200-DMA on March 28.

With that said, the EUR/JPY’s first resistance would be 135.00, which, once cleared, would pave the way for further gains. The next resistance would be April 4 daily high at 135.68, followed by 136.00 and 136.62, before the YTD high at 137.54.

On the flip side, the EUR/JPY first support would be 134.74. A decisive break would expose 134.00, followed by October 20 daily high at 133.48.

Technical levels to watch