EUR/JPY Price Analysis: Downward pressured, clings to 172.00
- EUR/JPY edges down 0.03%, pressured by suspected last week FX intervention.
- Technical outlook remains upward as price action stays above the Ichimoku Cloud.
- Key supports at 172.00, 171.58, and 170.56; resistance levels at 172.45 and 173.43.
The EUR/JPY remains under pressure for the third straight day after Japanese authorities intervened in the FX space last Thursday, although policymakers have not confirmed this. The cross-pair trades at 172.12, down 0.03%.
EUR/JPY Price Analysis: Technical outlook
From a daily chart perspective, the pair is upward biased as price action stills above the Ichimoku Cloud (Kumo) and a series of successive higher highs and lows, which could pave the way for further upside.
As measured by the Relative Strength Index (RSI), the momentum suggests that sellers had stepped in firmly, as the RSI hovers around the 50-neutral line, following a steep fall.
Given the backdrop, the EUR/JPY could consolidate in the short term. If the pair falls below 172.00, that can pave the way for further loss. The following support would be Kijun-Sen at 171.58, ahead of the 50-day moving average (DMA) at 170.56, ahead of the psychological 170.00 figure, ahead of the Senkou Span B at 169.92.
On further strength, the EUR/JPY first resistance would be the Senkou Span A at 172.45 before testing the Tenkan-Sen at 173.43.
EUR/JPY Price Action – Daily Chart
Euro FAQs
The Euro is the currency for the 20 European Union countries that belong to the Eurozone. It is the second most heavily traded currency in the world behind the US Dollar. In 2022, it accounted for 31% of all foreign exchange transactions, with an average daily turnover of over $2.2 trillion a day. EUR/USD is the most heavily traded currency pair in the world, accounting for an estimated 30% off all transactions, followed by EUR/JPY (4%), EUR/GBP (3%) and EUR/AUD (2%).
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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.
