• Safe-haven peers rallied vs. most G8 currencies, including the euro.
• EUR/JPY plunged more than 200 pips on Thursday and lost 1.70%.
• EUR/JPY Price Analysis: It might aim towards 135.30 once sellers reclaim 136.85.

EUR/JPY nosedived below the 100-day EMA on Thursday, spurred by dismal US economic data, reporting that Q2 GDP shrank for the second straight month, tapping the economy into a “technical recession.” Traders in the equity markets ignored the news, but in the FX space, safe-haven peers flourished. The EUR/JPY is trading at 136.91, slightly up 0.02% as the Asian session begins.

EUR/JPY Price Analysis: Technical outlook

From a daily chart perspective, the EUR/JPY shifted to neutral-downward biased. Even though the EUR/JPY 200-day EMA sits at 133.67 below the exchange rate, the break of the 100-day is significant. Nevertheless, EUR/JPY sellers need to reclaim the July 8 daily low at 136.85, which might be achieved as the Relative Strength Index (RSI) is in bearish territory, with enough room before reaching oversold levels. Once that level is cleared, it would pave the way for a EUR/JPY move towards 136.00.

EUR/JPY 1-hour chart

The EUR/JPY hourly chart depicts sellers losing steam, as the Relative Strength Index (RSI) is in oversold conditions. The cross-currency bottomed around 163.37, which would be the first support level, as EUR sellers take a breather. EUR/JPY traders should be aware that the pair might print a leg-up towards the confluence of the daily pivot and the 50% Fibonacci retracement around the 137.45-55 area before resuming downwards towards the EUR/JPY sellers’ target at 135.30.

EUR/JPY Key Technical Levels