EUR/JPY Price Analysis: Bears challenge 61.8% Fibonacci retracement near 131.35

• EUR/JPY approaches multi-week low as downside risk remains.
• Cross is hovering in a broader range of 131.30 and 132.50.
• Momentum oscillator in overbought zone warns of aggressive directional bets.

EUR/JPY remains muted on Wednesday morning in the Asian trading hours. The cross moves in a very tight trading range with a negative bias.

As of writing, EUR/JPY is trading at 131.51 with 0.02% gains on the day.

EUR/JPY daily chart

On the daily chart, the  EUR/JPY currency pair failed to sustain the 132.50 level and fell quickly toward the 61.8% Fibonacci retracement level, which extends from the low of 129.59.

If price sustains below the session’s low, then it could retest the earlier day’s low at 131.38.

The Moving Average Convergence (MACD) indicator holds onto an overbought trajectory with bearish momentum. Any downtick in the MACD would prompt EUR/JPY bears to aim for the 131.00 horizontal support level.

A daily close below 131.00, the key psychological mark would open the gates for the levels last seen in April. Next, the pair would meet the 130.50 horizontal support level.

Alternatively, if price moves higher, then it could first target the 50.0% Fibonacci retracement level at 132.00. The cross would spot the next target at the high of June 28 at 132.35.

A sustained move above the mentioned level would prompt EUR bulls to attract June 17 high at 132.87.

EUR/JPY additional levels