EUR/JPY Price Analysis: Bulls break resistance, eyeing 145.00 backed by a double bottom

• EUR/JPY draws a double bottom in the daily chart, implying that the pair could test the last year’s high.
• EUR/JPY Price Analysis: Breaking a five-month-old resistance trendline could open the door to testing the 2022 high.

The EUR/JPY edges higher after cracking a four-week-old resistance trendline and climbs above 144.00 as the Asian session begins. At the time of writing, the EUR/JPY exchanges hands at around 144.70, registering minuscule gains of 0.05%.

EUR/JPY Price action

From a longer-term perspective, the EUR/JPY formed a double bottom, meaning that the EUR/JPY pair is upward biased. Once the EUR/JPY cleared a one-month-old resistance trendline, it would collide with a five-month-old resistance trendline at 145.00. A decisive break above the latter would send the EUR/JPY pair rallying toward a 2022 high of 148.40, but it would face some hurdles on its way north.

Hence, the EUR/JPY’s first resistance would be March’s high at 145.56, followed by the 145.83 high of December 20. Upside risks would follow at the December 15 high at 146.72, followed by 2022 high at 148.40.

In an alternate scenario, the EUR/JPY first support would be the March 30 low at 143.13. A decisive break, and the subsequent demand area tested, would be the 20-day EMA at 142.93, followed by the 50 and 100-day EMAs, each at 142.70 and 142.42. If the downtrend continues, the 200-day EMA at 141.16 would be next.

EUR/JPY Daily chart

EUR/JPY Technical levels