EUR/JPY Price Analysis: Struggles below 20-DMA as bearish momentum builds

• EUR/JPY is down 0.45%, influenced by lackluster EUR/USD gains amidst the Japanese Yen strength.
• Technical outlook shows an evening-star pattern, suggesting potential for further downside.
• Key levels to watch: Downside support at 147.04, 145.99, and 145.67; upside resistance at 148.00 and 148.40.

The EUR/JPY weakened on Wednesday by 0.45%, dropped below the 20-day Exponential Moving Average (EMA), influenced by the EUR/USD pair, which finished up, but did not convincingly register solid gains aimed to extend the pair’s rally toward 1.1000. That and the Japanese Yen (JPY) strength were the perfect storms that weighed on the Euro (EUR). Hence, the EUR/JPY is trading at 147.49, down by 0.04% as the Asian session begins.

EUR/JPY Price Analysis: Technical outlook

The EUR/JPY printed back-to-back bearish sessions that cracked last year’s high of 148.40, extending its losses past the 20-day Exponential Moving Average (EMA). An evening-star three-candlestick pattern suggests that further downside is expected. But the Relative Strength Index (RSI) indicator remains bullish, while the 3-day Rate of Change (RoC) depicts sellers gathering momentum.

If EUR/JPY drops below the current week’s low of 147.04 and the RSI pierces the 50-midline, that will exacerbate a decline to the 50-day EMA at 145.99. A decisive break will expose the March 31 high-turned support at 145.67 before retracing to the 100-day EMA at 144.56.

Conversely, if EUR/JPY rallies and claims the 20-day EMA, it could climb above the 148.00 mark. Once cleared, the next stop would be the last year’s high of 148.40, followed by the 150.00 figure.

EUR/JPY Price Action – Daily chart