EUR/JPY Price Analysis: Aims to refresh two-month low, 135.00 eyed

• An establishment below 61.8% Fibo retracement adds to the downside filters.
• A Falling Channel formation has been favoring the yen bulls.
• Declining 20-and 50-EMAs signal more weakness ahead.

The EUR/JPY pair has attracted offers while attempting to contain the immediate hurdle of 136.33 in the early Tokyo session. The asset has displayed a bearish open rejection-reverse move as the asset has violated the opening price on the lower side after a mild upside move in the opening ticks. The cross is likely to violate the fresh two-month low at 135.55 and may renew a two-month low ahead. At the press time, the asset has surrendered the crucial support of 136.00 decisively.

On a four-hour scale, the asset has established below the 61.8% Fibonacci retracement (which is placed from May 12 low at 132.66 to June 8 high at 144.25) at 137.06. Usually, an establishment below 61.8% Fibo retracement indicates completion of the whole swing ahead.

Also, the asset is auctioning in a Falling Channel whose upper portion is placed from 142.32 while the lower portion is plotted from July 20 low at 140.43.

The 20-and 50-period Exponential Moving Averages (EMAS) at 137.00 and 138.22 respectively are scaling downside vigorously, which adds to the downside filters.

Also, the Relative Strength Index (RSI) (14) has shifted into the bearish range of 20.00-40.00, which indicates more pain ahead.

A decisive move below the two-month low at 135.55 will drag the cross towards May 25 low at 135.00, followed by May 20 low at 134.58.

On the flip side, the shared currency bulls could defend the downside momentum if the asset oversteps 61.8% Fibo retracement at 137.06. An occurrence of the same will drive the asset towards May 31 low at 136.80 and July 6 low at 137.27.

EUR/JPY four-hour chart