• EUR/JPY is still upward biased, but failure at 147.00 exacerbated a pullback towards 146.80s.
• Downside risks for the EUR/JPY remain at 146.60 as sellers will eye the 20-DMA.
• A bullish resumption will occur if EUR/JPY reclaims 147.00.

The EUR/JPY hit a YTD high at 147.45 but retreated and lost 0.11% in Monday’s trading session. However, as the Asian session begins, the EUR/JPY starts to trend higher, exchanging hands at 146.93, above 0.06%.

EUR/JPY Price Action

Monday’s price action formed an inverted hammer that could be a prelude of an evening star, a three-candlestick bearish pattern that could pave the way for further downside. Nevertheless, to confirm its validity, the EUR/JPY must break below the April 17 daily low of 146.66, followed by 146.50, before testing the April 14 low at 146.24.

The Relative Strength Index (RSI) shifted flat but remained bullish. Contrarily,  the Rate of Change (RoC), shows that buying pressure is waning as it heads to neutral territory.

For a bearish continuation, if EUR/JPY cracks 146.24, it needs to break below 146.00. Once done, the pair might dive toward the December 20 daily high at 145.83 before retreating toward the 20-day Exponential Moving Average (EMA) at 144.87.

On the flip side, for a bullish continuation, the EUR/JPY must reclaim 147.00, which would open the door to test the YTD high at 147.45, followed by the 148.00 figure.

EUR/JPY Daily Chart

EUR/JPY Technical Levels