EUR/JPY Price Analysis: Test of multi-day support line near 142.00 looms
- EUR/JPY takes offers to refresh intraday low, extends pullback from 21-DMA.
- Bearish MACD signals, downbeat RSI also favors sellers targeting ascending trend line from early August.
- Monthly bearish channel keeps the downside bias intact.
EUR/JPY renews its intraday low around 143.30 while extending the week-start fall during early Tuesday.
In doing so, the cross-currency pair also justifies the sustained trading below the 21-DMA and downbeat MACD signals, as well as softer RSI (14), to keep the bears hopeful inside a one-month-old bearish channel.
That said, an upward-sloping support line from early August, around 142.10 by the press time, appears imminent support for the EUR/JPY bears to watch.
Following that, the stated descending channel’s lower line, close to 141.50, will be in focus.
Alternatively, the 21-DMA hurdle surrounding 145.00 could challenge the short-term recovery of the EUR/JPY pair ahead of highlighting the bearish channel’s upper line, close to 145.85 at the latest.
In a case where the pair buyers manage to cross the 145.85 hurdle, the 146.00 round figure may act as an intermediate halt during the run-up towards the previous monthly top of 148.40.
Overall, EUR/JPY is likely to remain weak inside a short-term bearish chart formation while a multi-day-old support line lures the downside momentum of late. It should be noted, however, that, the 141.50 is the key support to watch before ruling out the odds of the pair’s rebound.
EUR/JPY: Daily chart
Trend: Further downside expected