• The EUR/JPY is tumbling in the week by some 1.88%.
• Selling pressure trips down the EUR/JPY to fresh weekly lows, below 138.00.
• The EUR/JPY might achieve a mean reversion move towards 139.00 before aiming towards the 100-day EMA at 136.00

The EUR/JPY is almost flat as the Asian Pacific session takes over, up 0.04%, after plunging 0.78% on Wednesday. All that courtesy of a mixed market mood painting a dark economic outlook due to the energy crisis that has the Euro area at the brink of a recession, as Russia squeezes energy supplies to “unfriendly” countries. At the time of writing, the EUR/JPY at 138.40.

Selling pressure trips down the EUR/JPY to fresh weekly lows

US equities finished in the New York session on a higher note. Asian stocks are set to open in negative territory, as illustrated by futures in Asia trading with losses, while safe-haven currencies in the FX market are recording gains.

The EUR/JPY, Wednesday’s open, was near Tuesday’s lows and seesawed through most of the Asian session. However, once the European session took over, EUR/JPY’s sellers stepped in and sent the pair plunging towards a fresh weekly low at around 137.26.

EUR/JPY Daily chart

The EUR/JPY is neutral-upward biased, but the break of the 20 and 50-day EMAs opened the door for sellers, which piled around the 142.50 mark, and at 138.40, July 6 high, spurring EUR/JPY’s losses of 400 pips. A continuation to the downside looms, but a corrective leg towards 139.00 is on the cards.

If that scenario plays out, the EUR/JPY’s first support would be the 138.00 figure. Once cleared, the next support would be the July 6 low at 137.26, followed by the 100-day EMA at 135.92.

EUR/JPY Key Technical Levels