EUR/JPY Price Analysis: Downtrend stalls as doji suggests bulls entering the market
- EUR/JPY pair shows signs of stabilization, trading flat at 161.33 in the early Friday Asian session.
- Despite recent losses, the overall uptrend remains intact, with bulls eyeing the Tenkan-Sen at 161.88 to reinforce the upward momentum.
- Bears aim to drive the pair below the Kijun-Sen at 161.00, with subsequent support at Senkou Span B (159.32) and the November monthly low (159.06).
The EUR/JPY extends its losses for the fourth straight day, but price action seems to have formed a doji, suggesting the downtrend could be stalling ahead of the weekend. At the time of writing, the pair is trading at 161.33, flat as the Friday Asian session begins.
The uptrend remains intact, even though the pair fell to a weekly low of 169.59. On its way south the EUR/JPY broke key support levels like the Kijun-Sen at 161.00, which buyers later reclaimed, as the pair printed a close at 161.33.
That said, bulls are in charge, but they must reclaim the Tenkan-Sen at 161.88, to cement the bullish bias and challenge 162.00. A breach of the latter will expose 163.00, before testing the November 27 high at 163.71.
Conversely, bears need to push prices below the Kijun-Sen at 161.00. Once cleared, the next support emerges at the Senkou Span B at 159.32, followed by the November monthly low of 159.06.
EUR/JPY Price Analysis – 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.
