EUR/JPY Price Analysis: Evening star looming could pave the way below 141.00

• EUR/JPY opens the Asian session with minuscule gains of 0.08%.
• An evening star in the EUR/JPY daily chart could drive prices lower.
• For a bullish resumption, EUR/JPY buyers must reclaim 142.00.

EUR/JPY fell for the second straight day, as the Euro (EUR) weakened despite European Central Bank (ECB) members' hawkish rhetoric. In the early Asian session, the EUR/JPY is trading at 141.83, above its opening price by 0.10%, after hitting a weekly high of 143.63 on Wednesday.

EUR/JPY Price action

The EUR/JPY daily chart portrays the formation of a three-candlestick chart pattern, an evening star, which implies that the pair might be headed lower. However, Japanese Yen (JPY) bulls must reclaim 141.61, so the EUR/JPY could test the 200-day Exponential Moving Average (EMA) at 141.05. A breach of the latter could open the door for further downside.

Conversely, if Euro (EUR) bulls move in and reclaim 142.00, that could pave the way for them to reclaim the 100-day EMA and the confluence of the 20/50-day EMAs. Once the EUR/JPY breaks above 142.00, the 100-day EMA at 142.33 would be challenged. Upside risks lie at the confluence of the 20/50-day EMA at 142.55/60, on its way toward 143.00.

Oscillators like the Relative Strength Index (RSI) are in bearish territory but shifted flat, and meaning sellers are taking a respite. The Rate of Change (RoC) shifted gears and turned bearish, signaling that sellers are in control.

EUR/JPY Daily chart

EUR/JPY Technical levels