EUR/JPY Price Analysis: Bearish engulfing chart pattern triggers a fall, alongside Fed’s decision

• Fundamental news, like the US Federal Reserve 25 bps rate hike, spooked Euro buyers; hence the EUR/JPY fell.
• Short term, the EUR/JPY might extend its losses before continuing its uptrend.

The EUR/JPY dropped for the third straight session after hitting a multi-year high of 151.61, collapsing beneath the 149.00 figure on a 100-plus pip fall. A bearish engulfing candle pattern was followed by another bearish candle that dragged prices toward the 148.00 regions. At the time of writing, the EUR/JPY is trading at 148.92, down 0.05%, as the Asian session begins.

Must read: Breaking: Fed hikes policy rate by 25 bps to 5-5.25% as expected

EUR/JPY Price Analysis

Despite the ongoing correction on the pair, the EUR/JPY remains upward biased, which dragged the exchange rate 250 pips lower from its yearly highs. If EUR/JPY sellers would need to extend their gains, the pair must fall and reclaim last year’s high of 148.40, and once cleared, the next support in play would be the 20-day EMA at 147.57. But firstly, the EUR/JPY needs to crack below 148.00.

Conversely, for a bullish continuation, the EUR/JPY must reverse and conquer 149.00. A breach of the latter and the pair could rally towards the 2014 swing high at 149.78 before re-testing the 150.00 figure.

EUR/JPY Daily Chart