• EUR/JPY takes offers to renew intraday low, fades bounce off ascending support line from early August 2022.
• Failure to cross 200-EMA, bearish MACD signals keep sellers hopeful.
• Buyers need validation from three-month-old horizontal resistance to retake control.

EUR/JPY bears appear determined to break the multi-month-old support line as the quote drops to 140.75 as Tokyo opens for trading on Tuesday. The cross-currency pair’s latest weakness could be linked to its failure to cross the 200-Exponential Moving Average (EMA) despite bouncing off an upward-sloping support line from early August 2022.

Not only a retreat from the 200-EMA but the bearish MACD signals also keep the EUR/JPY sellers hopeful of breaking the aforementioned key support, around 139.35 by the press time.

Following that, the 61.8% Fibonacci retracement level of the pair’s May-October 2022 upside, near 138.65, can act as an additional filter towards the south.

In a case where the EUR/JPY remains bearish past the key Fibonacci retracement level, also known as the golden ratio, the sellers won’t hesitate to aim for August 2022 low surrounding 133.40.

Meanwhile, the 200-EMA and 38.2% Fibonacci retracement could challenge the EUR/JPY pair’s recovery moves around 141.00 and 142.40.

Should the pair buyers keep the reins past 142.40, the odds of witnessing a run-up towards the three-month-old horizontal resistance area surrounding 143.00 will be crucial to watch for further upside.

EUR/JPY: Daily chart

Trend: Further downside expected