EUR/JPY Price Analysis: Ends the week bearishly, tumbles below 160.00
- EUR/JPY records significant weekly losses, closing down by more than 2.20%.
- A key focus for traders is the Ichimoku Cloud support around the 158.00 level, which could accelerate the downtrend toward 154.00.
- For a shift back to bullish resumption, EUR/JPY must reclaim the Kijun-Sen at 161.00 and surpass the recent cycle low at 161.24, with the Tenkan-Sen at 161.68 up next.
The EUR/JPY closed the week with a negative tone, down by 1% on Friday, for a total of more than 2.20% weekly losses, and shifts bearish after breaking key support levels on Friday. At the time of writing, the EUR/JPY exchanges hands at 159.73, following a fall of more than 160 pips from a daily high of 161.77.
The pair shifted bearish, though it’s pending breaching support at the Ichimoku Cloud (Kumo), at around the 158.00 area. Once the EUR/JPY extends its losses below that price level, sellers will target the October 3 swing low of 154.34, ahead of the July 28 low of 151.40
On the other hand, EUR/JPY needs to reclaim the Kijun-Sen at 161.00 before challenging the most recent cycle low at 161.24, the November 21 low. If those levels are surrendered, the next stop would e the Tenkan-sen at 161.68.
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.
