EUR/JPY Price Analysis: Teases bears below 144.00
- EUR/JPY remains sidelined after snapping two-week downtrend.
- Lower high formation joins sluggish RSI to tease bears, 50-SMA restricts immediate downside.
- 200-SMA, seven-week-old descending trend line appear tough nuts to crack for bulls.
EUR/JPY treads water around 143.80 as bulls take a breather after posting the first weekly gain in three.
However, the lower highs in the last weeks and the RSI line’s retreat signal that the bullish momentum isn’t strong.
As a result, the pair sellers could aim for the 50-SMA level surrounding 143.15, a break of which could poke the 143.00 round figure.
In a case where EUR/JPY bears keep the reins past 143.00, the previous monthly low near 142.55 and the latest trough near 140.75 may probe the downside moves to target the 140.00 threshold.
Alternatively, recovery moves may initially confront the 200-SMA level of 144.77 before challenging a downward-sloping trend line from October 21, close to 144.90 at the latest.
Following that, the highs marked in late November around 146.15 could act as the last defense of the EUR/JPY bears.
Should the quote remains firmer past 146.15, the odds of witnessing a run-up towards the yearly top marked in October, around 148.40, can’t be ruled out.
Overall, EUR/JPY is likely to witness further hardships but the south run appears more lucrative than the upside momentum.
EUR/JPY: Four-hour chart
Trend: Further downside expected