EUR/JPY a slow burner with a bearish bias

FXStreet (Guatemala) - EUR/JPY is trading at 142.67, up 0.02% on the day, having posted a daily high at 142.72 and low at 142.56.

EUR/JPY has been a slow burner at the mid point of the handle while it attempts to keep off the lows in a drift that was lacking conviction and bearishness prevails. Valeria Bednarik, chief analyst at FXStreet notes that the in the 4 hours chart indicators are heading lower right below their midlines, increasing the possibilities of a bearish breakout, with moving averages way below current price. “Daily basis however, the pair extended its decline below Friday’s one, down to 142.35, with the immediate support however, at 142.20, November 4th daily low”.

There are a number of releases for Japan this week, but really, we are sticking with the consensus that the BoJ is unlikely to move from its current stance on monetary policy and its easing regime until the inflation target comes under threat. The Yen in that case is unlikely to draw in bids inside of a liquid and risk-on market setting. Valeria Bednarik explained also, technically, a break below 142.20 should lead to a continued slide towards 141.55 38.2% retracement of the same rally, with further declines then pointing for a probable test of 141.00/10 price zone.

EUR/JPY noteworthy levels

With spot trading at 142.68, we can see next resistance ahead at 142.70 (Daily Classic PP), 142.81 (Hourly 100 SMA), 143.00 and 143.14 (Daily Classic R1). Support below can be found at 142.61 (Hourly 20 EMA), 142.46 (Weekly Classic PP) ,142.29 (Daily Classic S1) and 141.10.