- The failure of EUR/JPY buyers at weekly highs left the Euro vulnerable to selling pressure.
- Sentiment shifted to slight risk following the Google news, and Italy’s government is about to collapse.
- EUR/JPY Price Analysis: Sellers have regained control around 142.00; if the ECB fails to deliver, a further drop below 140.00 is expected.
The EUR/JPY It plummets from two-week highs, erasing almost 50% of its weekly gains, and is approaching the 20-day EMA at 140.50, as sellers are looking for a breakout ahead of the ECB’s monetary policy decision. Thursday. In addition, the mixed market environment increased the appetite for safe-haven securities, such as the Japanese yen, which strengthened almost 0.50% against the euro. At the time of writing, the EUR/JPY is trading at 140.48.
EUR/JPY Price Analysis: Technical Outlook
EUR/JPY opened near daily highs, away from the 141.50 area, although later the cross pushed towards the R1 daily pivot, near 142.00, sellers stepped in, sending prices below the pivot daily, at 140.59, before entering a sideways range. However, the geopolitical news about the collapse of the Italian government opened the door for further bearish pressure, reaching a new daily low at 140.42.
EUR/JPY 1 hour chart
On the EUR/JPY 1 hour chart, the pair broke below a rising channel, opening the door for further selling pressures. Although EUR/JPY might find some bidding around the confluence of the daily S1 pivot and the 100 hourly EMA around 140.15-25, it might not deter sellers from exerting more pressure as the Euro outlook continues to deteriorate. .
Therefore, the next EUR/JPY support would be 140.00, followed by the July 18 low around 139.69, not so close to 139.50, before heading back towards the 139.00-20 zone, surrounded by the 200 hourly EMA and the daily pivot S2.
EUR/JPY Key Technical Levels
Source: Fx Street
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