• EUR/JPY sellers stepped in around 144.00, sending the pair sliding below 143.00.
• A bearish harami candle pattern in the daily chart suggests the EUR/JPY might be headed to the downside.
• Short term, the EUR/JPY hourly chart portrays the 20-EMA crossing under the 50-EMA, opening the door for a resumption of the downtrend.

The EUR/JPY retreats from weekly highs, as traders dump riskier assets, as market participants assess that a Fed “dovish” pivot might not happen, as Fed policymakers reiterated that further rate hikes are coming. At the time of writing, the EUR/JPY is trading at 142.88, below its opening price as the Asian session begins.

EUR/JPY Price Analysis: Technical outlook

The EUR/JPY rally stalled around 144.00 as Wednesday’s price action opened near Tuesday’s close and hit a daily low at 142.44 before closing at 142.98. Traders should be aware that a bearish-harami candle chart pattern emerged, as shown by the EUR/JPY daily chart. Therefore, if the EUR/JPY breaks decisively, October’s 5 low of 142.44 could pave the way for further losses.

The EUR/JPY’s first support would be the 20-day EMA at 142.11, which, once cleared, will expose the 142.00 mark.

In the one-hour scale, the EUR/JPY depicted a double top chart pattern, fulfilled through Wednesday’s session, falling towards the October 3 high at 142.46 before bouncing off toward the current exchange rate. Nevertheless, the 20-EMA is about to cross under the 50-EMA around 143.18, which coupled with the RSI’s aiming lower in bearish territory, could open the door for a resumption of the downtrend.

Therefore, the EUR/JPY first support would be the confluence of October’s 3 low and the 100-EMA at 132.44/48. The break below will expose the S1 daily pivot at 142.26, followed by the S2 pivot point at 141.50, ahead of the 200-EMA at 140.88.

EUR/JPY Key Technical Levels