EUR/JPY Price Analysis: Subdued around the 138.50-139.50 area

• EUR/JPY edges slightly up as the Asian Pacific session begins on positive sentiment.
• The cross-currency daily chart portrays the pair as neutral.
• In the near term, the EUR/JPY could reach 140.82 if it reclaims 139.87; otherwise, a fall towards 138.30s is on the cards.

The EUR/JPY is almost flat as the Asian Pacific session begins after registering minimal gains of 0.01% on Monday, hitting a daily high at 139.64. As the Asian Pacific session begins, the EUR/JPY is trading at 139.62, above its opening price, amidst a positive market mood.

EUR/JPY Price Analysis: Technical outlook

From a daily chart perspective, the EUR/JPY is neutral-biased, as the pair failed to break above/below the 133.39-142.32 range. Even though it’s a wide range, the daily moving averages (DMAs)begin to intersect in the 134.59-139.55 area, with a horizontal slope. Therefore, the cross-currency pair is sideways.

Short term, the EUR/JPY rising wedge, seen in the one-hour scale, broke below the bottom trendline, opening the door for Monday’s low at 138.68, before recovering some ground above the 139.00 mark. It is worth noting that the Relative Strength Index, although in bullish territory, is almost horizontal, meaning consolidation lies ahead.

In the scenario for the EUR/JPY breaking upwards, the first resistance would be the R1 daily pivot at 139.87. Once cleared, the next supply zones would be the confluence of the R2 pivot and the bottom-trendline of the rising wedge around 140.23 before reaching the R3 daily pivot point at 140.82.

On the flip side, the EUR/JPY first support would be the daily pivot at 139.27. a breach of the latter will expose the S1 pivot at 138.91, followed by the S2 pivot at 138.32.

EUR/JPY Key Technical Levels