May 24, 2023 8:5 AM

Euro and Japanese Yen Rate Analysis After Hitting a Weekly High

Euro and Japanese Yen Rate Analysis After Hitting a Weekly High

After Tuesday's trading, EUR/JPY is currently trading at approximately 149.24. The EUR/JPY pair reached a new weekly high of 150.05 before the cross fell as sentiment deteriorated, ending the day with losses of 0.40%.

Analysis of the EUR/JPY Price in Technical Prospects

The analysis says that it is still below the year-to-date (YTD) high of 151.61, the EUR/JPY daily chart indicates that the pair is neutral but slightly downward oriented. The EUR/JPY failed to surpass the 150.00 mark in the previous three trading days, and Tuesday's weak Eurozone (EU) economic data put the pair under selling pressure. Unless fundamental events like European Central Bank (ECB) speakers or Japanese inflation numbers provide any hints regarding the EUR/JPY's trend direction, this would likely keep the EUR/JPY locked in the 149.00–150.00 range.

The initial resistance level for the EUR/JPY on the upside is 150.00. If it is broken, the cross may rise toward 151.00 before reaching the YTD high of 151.61. However, the initial support level for the EUR/JPY is 149.00. A successful breakthrough of this barrier will open the door for a retracement into the 20-day Exponential Moving Average (EMA), which is located at 148.42, before a decline down the 148.00 level. The 59-day EMA at 146.85 would be the next stop.

The 3-day Rate of Change (RoC) changes to neutral while the Relative Strength Index (RSI) signal remains bullish but has gone flat, indicating that buyers are taking a break.

EUR/JPY Price Action – Daily chart