EUR/JPY Price Analysis: Consolidates inside the Kumo, though tilted to the downside
- EUR/JPY stalls at 156.60, encapsulated within the Kumo, with a discernible tilt towards a downward trajectory.
- A potential breach below Senkou Span B at 155.58 could trigger a descent towards the October 3 low of 154.34.
- Conversely, surpassing the Kumo top at 157.00 may pave the way to challenge the October 2 high at 158.47.
The EUR/JPY trades sideways as Friday’s Asian session commences, following Thursday’s price action, in which indecision was the main driver that printed a doji. At the time of writing, the EUR/JPY exchanges hand at 156.60, almost unchanged.
Consolidation is the name of the game, inside the Kumo, capped on the downside by the Kijun-Sen at 156.49. However, due to the latest drop on Tuesday, the pair is neutral to slightly downwards, and once it breaks below the Senkou Span B at 155.58, that would exacerbate a drop to test the October 3 low of 154.34, before slumping toward the July 28 cycle low of 151.40.
Conversely, if EUR/JPY climbs past the top of the Kumo at 157.00, that would open the door to test the October 2 daily high at 158.47 before challenging the 159.00 mark.
EUR/JPY Price Action – Daily chart
EUR/JPY Technical Levels
Author
Christian Borjon Valencia
FXStreet
Christian Borjon began his career as a retail trader in 2010, mainly focused on technical analysis and strategies around it. He started as a swing trader, as he used to work in another industry unrelated to the financial markets.
