EUR/JPY Price Analysis: Buyers emerge around 138.00 lifting the cross to fresh weekly highs

• The EUR/JPY erases its weekly losses and is up 0.50%.
• A risk-off impulse was no excuse for the euro to rally against the JPY.
• EUR/JPY is neutral-upwards as buyers stepped in, reclaiming the 139.00 mark.

The EUR/JPY rises during the North American session, refreshing weekly highs around 139.76, but retreated some as the Wall Street session winds down on Thursday, amidst a dampened investors’ mood, sparked by another US elevated inflation report, in this time, the PPI. At the time of writing, the EUR/JPY is trading at 139.22, gaining 0.78%.

EUR/JPY’s price action portrays the cross, opening near the daily pivot point of the day, around 138.10s, dipping to the daily low at 137.99, before rallying more than 150 pips, hitting a fresh weekly high at the R2 daily pivot at 139.76. After that, the EUR/JPY dipped towards the 139.10 lows but stayed positive in the day, as the EUR/USD is also back above parity at around 1.0020s.

EUR/JPY Daily chart

From a technical perspective, the EUR/JPY shifted from neutral to neutral-upwards as EUR/JPY buyers reclaimed the 50-day EMA around 139.05, as well as breaking above a descending channel, which has opened the door for further upside. EUR/JPY traders should notice that oscillators are aiming higher, particularly the Relative Strength Index (RSI), closing to the 50 line at 47.57.

Therefore, the EUR/JPY path of least resistance is upwards, and its first resistance would be July 6 daily high at around 139.50. Break above will expose the 140.00 figure, followed by a challenge of the 20-day EMA at 140.83. Once cleared, the EUR/JPY’s next resistance would be the July 5 high at 142.37.

EUR/JPY Key Technical Levels