EUR/JPY attempting to bounce up from 146.28 support, upside bias is losing momentum
The Euro-Yen’s rejection from 148.60 highs accelerated on Wednesday, with the pair weighed by the risk of mood amid downbeat macroeconomic data and mixed quarterly earnings in the US.
The negative mood has offset the monetary policy divergence which has boosted the common currency nearly 7% higher in the last four weeks, as investors’ concerns about an economic recession have dampened hopes for aggressive tightening by the ECB.
A look at the 4-hour chart and we see the pair, capped below the 50-period SMA, with upside momentum losing strength.
On the upside, the pair needs to return above the previous trendline support to regain bullish confidence. Above here, the next resistance lies at 148.60. Support levels are 146.28 and 145.00.