EUR/JPY Price Analysis: Rally capped around the 20/50-DMA as bulls take a breather

• The EUR/JPY is subdued around 143.40s due to a risk-off impulse.
• The 20 and 50-day Exponential Moving Averages capped the EUR/JPY rally towards 144.00.
• EUR/JPY: Once it clears 143.80, a test of the MTD high of 144.85 is on the cards.

The EUR/JPY edged higher after hitting a daily low of 143.16 and traveling all the way towards its daily high if 144.58 amidst a deteriorated market mood that keeps safe-haven peers, like the Japanese Yen (JPY), on the defensive. As the Asian Pacific session begins, the EUR/JPY is trading at 143.50, registering minuscule gains of 0.01%.

EUR/JPY Price Analysis: Technical outlook

The EUR/JPY  remains neutral-to-upward biased, trading within the boundaries of a descending channel formed since the beginning of November. The EUR/JPY soared towards 144.50s, but the intersection of the 20 and 50-day Exponential Moving Averages (EMAs), around 143.80/95, capped the rally. With oscillators like the Relative Strength Index (RSI) and the Rate of Change (RoC) flashing signs, the selling pressure is fading, which could open the door for further gains.

The EUR/JPY key resistance levels are the 143.80/95 area. A breach of the latter and the 144.00 psychological price level would be up for grabs, followed by November’s monthly high of 144.85.

As an alternate scenario, a EUR/JPY break below December’s 6 daily low of 143.09 could lay the ground for further downside pressure. Once cleared, the following support would be the 100-day EMA at 142.43, followed by the December 5 daily low of 141.49, followed by December’s MTD low at 140.76.

EUR/JPY Key Technical Levels