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.

With oscillators like the Relative Strength Index (RSI) and the Rate of Change (RoC) flashing signs, the selling pressure is fading, which could open the door for further gains.

The EUR/JPY key resistance levels are the 143.80/95 area. A breach of the latter and the 144.00 psychological price level would be up for grabs, followed by November’s monthly high of 144.85.

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.

Bearish momentum is expected to persist for a while on EUR/JPY

EURJPY Dominated by Bearish Momentum

Dec 12 2022

Stop Loss -1.22%

Holding time 2d22hr

144.611

Entry price

146.370

Stop loss price