#EURJPY @ 140.849 takes offers to renew intraday low, fades bounce off ascending support line from early August 2022., @nehcap view: Further downside expected (Pivot Orderbook analysis)

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• EUR/JPY takes offers to renew intraday low, fades bounce off ascending support line from early August 2022.
• Failure to cross 200-EMA, bearish MACD signals keep sellers hopeful.
• Buyers need validation from three-month-old horizontal resistance to retake control.

The pair currently trades last at 140.849.

The previous day high was 142.22 while the previous day low was 140.16. The daily 38.2% Fib levels comes at 140.95, expected to provide resistance. Similarly, the daily 61.8% fib level is at 141.43, expected to provide resistance.

EUR/JPY bears appear determined to break the multi-month-old support line as the quote drops to 140.75 as Tokyo opens for trading on Tuesday. The cross-currency pair’s latest weakness could be linked to its failure to cross the 200-Exponential Moving Average (EMA) despite bouncing off an upward-sloping support line from early August 2022.

Not only a retreat from the 200-EMA but the bearish MACD signals also keep the EUR/JPY sellers hopeful of breaking the aforementioned key support, around 139.35 by the press time.

Following that, the 61.8% Fibonacci retracement level of the pair’s May-October 2022 upside, near 138.65, can act as an additional filter towards the south.

In a case where the EUR/JPY remains bearish past the key Fibonacci retracement level, also known as the golden ratio, the sellers won’t hesitate to aim for August 2022 low surrounding 133.40.

Meanwhile, the 200-EMA and 38.2% Fibonacci retracement could challenge the EUR/JPY pair’s recovery moves around 141.00 and 142.40.

Should the pair buyers keep the reins past 142.40, the odds of witnessing a run-up towards the three-month-old horizontal resistance area surrounding 143.00 will be crucial to watch for further upside.

Trend: Further downside expected

Technical Levels: Supports and Resistances

EURJPY currently trading at 140.8 at the time of writing. Pair opened at 140.67 and is trading with a change of 0.09% % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 143.63, 50 SMA 142.16, 100 SMA @ 142.86 and 200 SMA @ 141.8.

The previous day high was 142.22 while the previous day low was 140.16. The daily 38.2% Fib levels comes at 140.95, expected to provide resistance. Similarly, the daily 61.8% fib level is at 141.43, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 139.81, 138.96, 137.76
• Pivot resistance is noted at 141.87, 143.07, 143.93

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