EUR/JPY Price Analysis: Downtrend stalls as doji emerges, bulls regain 157.00
- EUR/JPY's marginal decline influenced risk aversion, as the pair fluctuates within a narrow range.
- Downward trend persists, with potential supports at Tenkan-Sen (157.03), Kijun-Sen (156.42), and 156.00 level.
- Buyers aim to overcome hurdles at 158.00 and 159.00, targeting Ichimoku Cloud bottom for a possible upward shift.
The Euro posts minuscule losses after seesawing in an 80 pip range on Tuesday, with the EUR/JPY trading at 157.91, down 0.01% due to investors turning risk averse, as safe-haven currencies rose.
The downtrend has extended for the second straight day, though the EUR/JPY jumped from around the Tenkan-Sen, sitting at 157.03. nevertheless, the path of least resistance is downward, and if sellers would like to regain control, they must push prices lower.
Therefore, the first support would be the Tenkan-Sen, followed by the 157.00 figure. Once cleared, the next demand area is seen at the Kijun-Sen at 156.42. if bears reclaim that level, they could challenge 156.00.
On the other hand, although the pair failed to print a new daily high in the day, buyers remain hopeful of lifting the cross pair. For them, the first resistance would be the 158.00 figure, followed by the 159.00 mark. A breach of the latter would expose the bottom of the Ichimoku Cloud (Kumo) at around the 159.30/50 area, followed by 160.00.
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.
