Nov 02, 2022
VOT Research Desk
EUR/JPY falls half a percent as bears maintain control at 145.80, falling for the third day in a row to early Wednesday morning in Europe.
The recent weakening in the cross-currency pair could be attributed to the seller’s ability to overcome an upward-sloping support line from September 26, which is now resistance around 146.15.
The sharpest negative MACD signal since October 03 adds to the downside bias. To keep sellers hopeful, the EUR/JPY pair’s subsequent decline must yield a daily closing below September’s peak of 145.63.
The 21-DMA level surrounding 145.15 also acts as a downside filter.
If the quote continues negative below 145.15, the possibility of a south-run towards the 144.10-00 region, which includes tops established since October 20, cannot be ruled out.
Alternatively, a daily close above the support-turned-resistance line at 146.15 is required for recovery advances.
Nonetheless, a downward trend line from October 21, close to 147.50 at press time, will serve as the bears’ last line of defense.
If EUR/JPY prices continue to rise above 147.50, the previous monthly high of 148.40 and the upper line of a 3.5-month-old bullish channel, both around 149.10, will be in play.
|
Daily SMA20 145.12 |
|
Daily SMA50 142.7 |
|
Daily SMA100 140.87 |
|
Daily SMA200 137.49 |
