EUR/JPY Price Analysis: Multi-year high is short-lived as a bearish engulfing candle pattern emerges

• EUR/JPY needs to break below the April 25 low of 146.28 for further downside action.
• For a bullish scenario, the EUR/JPY needs to reclaim 147.00 to pave the way towards re-testing 148.00.

A bearish-engulfing candle pattern emerges at the EUR/JPY daily chart after the pair hit a new multi-year high at 148.63. However, the EUR/JPY collapsed by more than 150 pips, and as the Asian session begins, the EUR/JPY is trading at 146.79.

EUR/JPY Price Action

After Tuesday's price action, the EUR/JPY is set for a deeper pullback. However, the pair must break below the April 25 low of 146.28 before challenging the 20-day Exponential Moving Average (EMA) at 145.95. As of writing, the EUR/JPY is testing the December 15 daily high at 146.72, previous resistance that turned support, and once it is broken, it could pave the way to the 146.00 mark, ahead of the 20-day EMA.

The next demand area would be the March 31 swing high-turned-support at 145.67, followed by the 145.00 figure, ahead of the 50-day EMA at 144.50.

Conversely, if EUR/JPY buyers reclaim 147.00, that could pave the way towards re-testing 148.00 before challenging the YTD high.

EUR/JPY Daily Chart