• EUR/JPY bounced off weekly lows and gained almost 1% on Tuesday.
• Albeit recovering from Monday’s losses, faltering of achieving a daily close above 137.00 left the EUR/JPY vulnerable to selling pressure.

The EUR/JPY reached a new weekly low at 134.94 on Tuesday but staged a comeback and hit a daily high at 136.92 before closing at 136.50, off the day’s high. At the time of writing, the EUR/JPY is trading at 136.56, slightly up 0.02% as Wednesday’s Asian Pacific session begins.

EUR/JPY Price Analysis: Technical outlook

EUR/JPY Tuesday’s price action witnessed a shared currency recovery but faltering to close above Monday’s open at 136.89, leaving the cross vulnerable to sellers. Until Wednesday’s price action shows that the EUR/JPY trading above 137.00, the cross-currency pair is neutral-to-downward biased. Nevertheless, if the previously-mentioned scenario plays out, a rally towards the 50-day EMA at 138.00 is on the cards.

Therefore, the EUR/JPY’s first resistance would be the 20-day EMA at 137.24. Once broken, the next supply zone would be the 100-day EMA at 138.09, followed by the 50-day EMA at 139.34.

On the other hand, failure at 137.00 would open the door for further losses. The EUR/JPY first support would be 136.00. Break below will expose the weekly low at 134.94, followed by the 200-day EMA at 133.98.

EUR/JPY Key Technical Levels