EUR/JPY Price Analysis: Struggles around solid resistance at 139.50, retraces towards 139.00

• EUR/JPY trims its weekly gains but remains up around 0.17%.
• Investors cheered the US Fed’s dovish commentary, though Thursday’s US GDP would give traders clues about the Fed’s next move.
• EUR/JPY Price Analysis: Downward biased; a break below 139.00 would pave the way for further losses.

On Wednesday, EUR/JPY climbed towards the intersection of the 20 and 50-day EMAs as the US Fed hiked rates by 75 bps, aligned to market expectations. The EUR/JPY reacted upwards, following the lead of the EUR/USD, which rallied sharply, as the greenback, instead of strengthening, weakened. A slight change in the Fed monetary policy statement, acknowledging that the US economy is “softening,” was cheered by bulls. The EUR/JPY is trading at 139.15, slightly down 0.03% as the Asian session begins.

EUR/JPY Price Analysis: Technical outlook

The EUR/JPY daily chart is neutral-to-downward biased. Wednesday’s jump faced solid resistance around the 20-day EMA at 139.34, though the EUR/JPY hit a daily high at 139.50, retraced below the former, so EUR/JPY sellers remain in charge. Further, the Relative Strength Index (RSI) stayed in negative territory and is still below the 7-day RSI’s SMA. Therefore, the EUR/JPY is subject to additional selling pressure.

EUR/JPY 1-hour chart

The EUR/JPY hourly chart and the daily chart are downward biased. As the Asian session began, the EUR/JPY slipped below the 100-hour EMA at 139.28, paving the way toward 139.00. It’s worth noting that below the latter, the intersection of the 20 and 50-hour EMAs around 138.96 would be difficult support to overcome. If EUR/JPY sellers reclaim the latter, the next support would be the S1 daily pivot point at 138.61. Once cleared, the EUR/JPY’s next support would be the July 26 low at 138.16, followed by the S3 pivot at 137.52.

EUR/JPY Key Technical Levels