EUR/JPY Price Analysis: Facing strong buying pressure around 127.50-80, as bull’s eye 128.50

• Despite a risk-on market mood, the shared currency losses ground against the safe-haven Japanese yen.
• The EUR/JPY faced strong resistance at 128.50, retreated around the S1 daily pivot at 127.66.
• EUR/JPY Price Forecast: Despite retreating, it seems poised to the upside, as the 50-hour SMA is about to cross over the 100-hour SMA.

The EUR/JPY retreats from daily highs around 128.47, trading at 127.9 during the New York session at the time of writing. 

On Tuesday in the overnight session, the EUR/JPY surged up to the daily high at 128.50, twenty pips above the 200-hour simple moving average (SMA). However, as market sentiment improved due to factors like the omicron variant causing mild symptoms in people infected by, and the creation of an antibody boost effective against the newly discovered variant spurred a sell-off of EUR that sent the pair tumbling towards 127.60.

That said, at press time in the 1-hour chart, the EUR/JPY pair is facing strong resistance at the confluence of the 50, the 100-hour SMA’s, and the daily central pivot point at 127.87. During the New York session, the EUR/JPY pair has remained subdued, within a 21-pip range, but it is worth noting that most of the last eight 1-hour candles have a very long bottom wick, which shows that buying pressure, could be accumulating around that area.

In the outcome of breaking to the upside, the first resistance would be the December 6 high at 128.08. A breach of the latter would expose the 200-hour SMA at 128.14, followed by the R1 daily pivot at 128.24, and then the R2 daily pivot at 128.44.

On the flip side, in the case of falling further, the first support would be the S1 daily pivot at 127.66, followed by the December 6 low at 127.50 and then the S2 pivot at 127.29.

EUR/JPY 1-HOUR CHART