EUR/JPY Price Analysis: Bears running out of steam around 138.30

• EUR/JPY remains depressed around two-week low, jostles with short-term key support.
• Nine-day-old support line restricts immediate downside, 50-SMA guards recovery.
• Sluggish RSI hints at further grinding of prices towards the south.

EUR/JPY struggles to keep bears happy as it dribbles around 138.20 heading into Thursday’s European session. In doing so, the cross-currency pair flirts with short-term support lines amid sluggish market.

That said, the nearly oversold RSI and the pair’s repeated bounces off adjacent trend line supports challenge the bears.

However, buyers are less likely to take entries until the quote stays below the 50-SMA level surrounding 139.86, as well as the 140.00 threshold.

It’s worth noting that the EUR/JPY upside past 140.00 could direct the bulls towards the previous weekly peak near 142.35. During the run-up, 140.50 may offer an intermediate halt.

Alternatively, a three-week-old support line clutches the pair sellers near 138.20 before the weekly trend line support of 137.80.

Following that, the lows marked during early July, near 137.20 and 136.85, should gain the bear’s attention.

In a case where EUR/JPY prices remain weak past 136.85, a gradual south-run towards May’s low near 132.65 can’t be ruled out.

EUR/JPY: Four-hour chart

Trend: Limited downside expected