EUR/JPY Price Analysis: Well-set for further downside below 146.00

• EUR/JPY breaks five-week-old support line during three-day downtrend.
• MACD prints the biggest bearish signal in a month.
• A daily closing below September’s peak becomes necessary for the buyers to leave the table.

EUR/JPY drops half a percent as the bears keep reins around 145.80, down for the third consecutive day to early Wednesday morning in Europe.

The cross-currency pair’s latest weakness could be linked to the seller’s ability to conquer an upward-sloping support line from September 26, now resistance around 146.15. Also adding strength to the downside bias is the strongest bearish MACD signal since October 03.

That said, the EUR/JPY pair’s further downside needs to provide a daily closing below September’s peak of 145.63 to keep the sellers hopeful. Also acting as a downside filter is the 21-DMA level surrounding 145.15.

In a case where the quote remains bearish below 145.15, the odds of its south-run towards 144.10-00 area comprising tops marked since October 20 can’t be ruled out.

Alternatively, recovery moves need a daily close beyond the support-turned-resistance line around 146.15.

Even so, a descending trend line from October 21, close to 147.50 by the press time, will act as the last defense of the bears.

Should the EUR/JPY prices remain firmer past 147.50, the previous monthly high of 148.40 and the upper line of a 3.5-month-old bullish channel, around 149.10, will be in focus.

EUR/JPY: Daily chart

Trend: Further downside expected