EUR/JPY Price Analysis: On a correction above 139.00 as bears take a respite

• EUR/JPY bounced off last weekly lows and reclaimed 139.00 amidst a sour market sentiment.
• EUR/JPY Price Analysis: Bearish below the 200-day EMA; otherwise, it could test 141.00.

The EUR/JPY bounces off the last week’s low of 138.01 and climbs above the 139.00 figure, despite a sour sentiment. Hence, the Euro (EUR) gained some ground against the Japanese Yen (JPY), though it would likely be influenced by the Bank of Japan’s (BoJ) Wednesday’s monetary policy decision. At the time of writing, the EUR/JPY is trading at 139.10, up by 0.43%.

EUR/JPY Price Analysis: Technical outlook

Even though the EUR/JPY is printing a leg-up, the overall trend is downwards once the cross dived below the 200-day Exponential Moving Average (EMA) at 140.19. The Relative Strength Index (RSI), although aiming up, it remains at bearish territory, suggesting that sellers remain in charge, while the Rate of Change (RoC), indicates that buyers are in charge. So, EUR/JPY  might refrain from opening fresh shorts until having a clearer RSI signal, as the fundamental bias favors the JPY.

If the EUR/JPY fails to clear the 200-day EMA, that will keep the pair’s bias bearish. Therefore, the EUR/JPY first support would be the 139.00 mark. The break below will expose the 138.01 January 13 daily low, followed by the January 3 daily low of 137.38, followed by the 135.51 August 24 swing low.

On the other hand, EUR/JPY reclaiming the 200-day EMA would lif the pair towards the 20-day EMA at 140.99, followed by the 100-day EMA at 142.05, followed by the 50-day EMA at 142.15, ahead of 142.50.

EUR/JPY Key Technical Level