• EUR/JPY faces stiff resistance as it trades within a busy zone.
• Bearish RSI and negative RoC indicate momentum gathering for EUR/JPY sellers.
• Upward trend is possible if EUR/JPY remains above 147.50 and tests the 148.00 mark.

The EUR/JPY trimmed some of its Tuesdau’s losses on Wednesday, gaining 0.58% as the pair edged above the 147.00 figure. Nevertheless, technical indicators suggest downward action in the EUR/JPY is warranted, trading at 147.39 as the Asian session begins.

EUR/JPY Price Action

The EUR/JPY pair trades within a busy zone of resistance areas. Additionally, printing multi-year highs at around 148.63, it opened the door for a mean reversion move, after a steep advance achieved since the beginning of April, from around 140.00, towards the 148.60s area.

Oscillators like the Relative Strength Index (RSI) at bearish territory continued to edge lower. The Rate of Change (RoC) registers two negative readings out of three days, indicating that sellers are gathering momentum.

Therefore, the EUR/JPY could re-test the weekly lows of 146.28. The cross-currency pair’s first support would be the 147.00 mark. If EUR/JPY cracks the figure, the next support would be 146.28, followed by the 20-day EMA at 146.16, which has been tracking price action, since the start of the month, as a dynamic support.

Conversely, an upward continuation is likely to happen if EUR/JPY holds above 147.50, exacerbating a test of 148.00, before heading toward the multi-year high at 148.63.

EUR/JPY Daily Chart