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The EUR/JPY pair is encountering resistance near 141.00 during the Tokyo session. The cross is struggling to prolong its recovery above the aforementioned resistance, but the upside seems likely as the European Central Bank (ECB) prepares for additional rate increases in the near future.

Isabel Schnabel, a member of the ECB's Executive Board, stated that nominal inflation has begun to decline, while underlying inflation remains persistent. To bring higher inflation down to the desired levels, the ECB would require enormous fortitude; consequently, further rate increases cannot be ruled out.

Tuesday's scheduled speech by Bank of Japan (BoJ) Governor Kazuo Ueda will be of great significance for the Japanese Yen. This will provide insight into the probable course of monetary policy action.

The EUR/JPY pair has rebounded strongly from the horizontal support formed by the Bearish Megaphone chart pattern on a two-hour time frame. The horizontal support of the chart pattern is drawn from the low of March 16 at 139.13, while the upward trendline is drawn at 141.58. A bearish megaphone pattern typically results in extreme vulnerability after the breakdown of key support.

For Eurozone investors, the 50-period Exponential Moving Average (EMA) at 141.00 represents a point of resistance.

The Relative Strength Index (14) has moved from the bearish range of 20.00-40.00 to the bullish range of 40.00-60.00, indicating a reversal for the time being.

Should the asset break above the March 21 high of 142.79, Euro bulls would push the cross toward the March 9 low near 144.00 and then the March 15 high of 145.00.

In contrast, a break below the March 16 low of 139.13 would drive the cross toward the January 19 low of 138.00. A decline below this level would expose the asset to a low of approximately 137.36 on September 26, 2022.

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