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EUR/JPY Price Analysis: Daily rising wedge targeting a decline to 143.00
The EUR/JPY daily chart displays a rising wedge pattern with bearish implications. The EUR/JPY price action retreated as the cross approached 146.00, indicating an imminent breakout.
The EUR/JPY continues to consolidate within a rising wedge, although finishing Tuesday with small losses of 0.04% due to a risk-on mood. As the Asian session commences, the EUR/JPY exchange rate is trading at 145.48, a marginal gain of 0.01%.
As stated previously, a rising wedge formed on the EUR/JPY daily chart, with the majority of daily lows following the 50-day Exponential Moving Average (EMA) as dynamic support. Despite the fact that the cross continues to advance steadily, price action has diminished over the past four days. This would indicate that the EUR/JPY is stabilizing or that a breakout is imminent.
If the EUR/JPY surpasses 146.00, it could amplify a rally toward the year-to-date (YTD) highs near 148.40, although buyers must first overcome certain resistance levels. The first is the rising wedge top trendline near 146.50, followed by the daily high on November 9 at 147.11. Once cleared, the psychological 148.00 will be the next target.
Otherwise, if the EUR/JPY breaks below the rising wedge, the 50-day EMA at 144.12 would provide first support. A violation of this level will expose the 143.00 level, followed by the 142.54 swing low from November 11.
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