• The EUR/JPY erased Monday’s gains and is down 0.30% in the week.
• A risk-off impulse weighed on the shared currency, while safe-haven peers got bid, like the yen.
• EUR/JPY Price Analysis: In the short-term, tilted to the downside, it might break below 138.00.

The EUR/JPY tumbles from around the confluence of the 20 and 50-day EMA around 139.767-72 and breaks below the 139.00 thresholds, refreshing two-week lows around  138.13 in the mid-North American session. At 138.55, the EUR/JPY is set to finish Tuesday’s session with losses of 0.76%.

Investors’ mood shifted sour ahead of the US Federal Reserve monetary policy meeting, courtesy of US companies missing earnings, while others blame inflation and missing earnings due to currency fluctuations, which weighed on the EUR/JPY.

EUR/JPY Price Analysis: Technical outlook

The EUR/JPY daily chart depicts the pair as neutral-to-upward biased but under some selling pressure. EUR/JPY bore stepped in around the confluence of the 20 and 50-day EMA and sent the pair tripping down almost 200 pips, but once the dust settled, it bounced off to current price levels. On the downside, the EUR/JPY’s first support would be the 100-day EMA at 137.44 before giving way to sellers on its way to July’s 8 low at 136.85. Upwards, EUR/JPY buyers need to reclaim the 20 and 50-day EMA area around 139.46-80 to regain control.

EUR/JPY 1-hour chart

The EUR/JPY hourly chart depicts the pair as downward biased after opening near the daily highs at 139.61. the cross consolidated around 139.32-60 before nose-diving towards its daily low close to 138.00. However, as the Asian session began, the EUR/JPY is trading below the daily pivot, located at 138.83. If EUR/JPY buyers reclaim the July 26 low at 138.71, that will pave the way for further upside. Nevertheless, the cross-currency pair path of least resistance is downwards.

Therefore, the EUR/JPY first support would be 138.00. Break below will expose the S1 daily pivot at 137.78, followed by the July 12 low at 137.14, and then the July 8 low at 136.85.

EUR/JPY Key Technical Levels