EUR/JPY Price Analysis: Dips inside the Kumo, as bears loom around 157.00
- EUR/JPY slips inside the Ichimoku Cloud after maintaining levels above it for the past three sessions.
- The pair breaches the October 12 low of 157.64, with potential further descent towards crucial support levels identified around 156.49/47, 156.00 mark, and Kumo’s bottom at 155.55/60.
- For upward momentum, the EUR/JPY needs to reclaim the 158.00 level to challenge the top of the Kumo at 158.05/10.
EUR/JPY finally dropped inside the Ichimoku Cloud (Kumo) after flirting during the last three trading days, with the cross-currency pair printing back-to-back days of losses. As we head into the weekend, the pair trades at 157.08, down 0.35%.
The daily chart shows the EUR/JPY drifting lower, below the October 12 low of 157.64, extending its losses toward the figure. A breach of the latter and the cross would drop to the confluence of the Kijun and Tenkan-Sen levels at around 156.49/47, followed by the 156.00 psychological level. If those demand areas are taken, the bottom of the Kumo at 155.55/60, emerges as the last line of defense for bulls before the pair turns bearish.
On the flip side, if EUR/JPY buyers step in, they must claim the 158.00 mark, before cracking the top of the Kumo at 158.05/10. Once cleared, the next resistance would be the October 12 swing high at 158.61, before climbing toward 159.00.
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.
