EUR/JPY Price Analysis: Bounces off three-week-old support line, 200-EMA

• EUR/JPY rebounds from short-term key support confluence amid sluggish markets.
• Unimpressive oscillators, descending trend line from late December challenge buyers.
• Multiple hurdles to probe bears past 140.40-30 support confluence.

EUR/JPY picks up bid to 140.80 while paring the biggest daily loss in nearly a month during Wednesday’s sluggish Asian session. In doing so, the cross-currency pair bounces off a convergence of the 200-day Exponential Moving Average (EMA) and an upward-sloping support line from January 19, 2023, close to 140.40-30 at the latest.

The recovery moves, however, gain little support from the oscillators as the RSI (14) remains steady while the MACD signals are mostly sluggish.

Even so, a corrective rebound from an important support towards 141.00 rounds figure can’t be ruled out.

Following that, a six-week-old descending resistance line, close to 142.90 by the press time, will gain the EUR/JPY pair buyer’s attention.

Should the quote manage to stay firmer past 142.90, the 143.00 round figure may act as an extra validation point ahead of portraying the pair’s gradual run-up targeting a descending resistance line from October 2022, around 145.20 at the latest.

Alternatively, a daily closing below the 140.40-30 support confluence, could quickly drag the EUR/JPY price towards the 61.8% Fibonacci retracement level of the pair’s August-October 2022 upside, near 139.10. During the fall, the 140.00 round figure may offer a breathing space to the bears.

It’s worth noting, however, that the EUR/JPY weakness past 139.10 could make it vulnerable to testing an ascending support line from late September 2022, near 138.00 at the latest.

EUR/JPY: Daily chart

Trend: Limited recovery expected