EUR/JPY Price Analysis: Faces support at around 157.00, as bearish outlook weigh on the cross
- EUR/JPY retreats from last week’s high of 158.47, with fears of intervention looming.
- The daily chart depicts a neutral bias for the pair, with potential downside exposure to 156.00 and 155.49 if it breaches the Kumo at around 157.00.
- Bearish outlook in the hourly chart suggests a potential mean reversion move towards 157.30 before resuming its downtrend towards the 156.00 figure.
The EUR/JPY retreated from last week’s high of around 158.47 amid fears of an intervention by Japanese authorities, dropped 0.54% on Monday, and reached the top of the Ichimoku Cloud (Kumo) at around the current exchange rate. The cross is trading at 157.02 as the Asian session begins.
The daily chart portrays the pair as neutral biased, capped on the downside by the Kumo at around 157.00. A breach of the latter will expose 156.00, followed by the bottom of the Kumo at around 155.49. Conversely, if EUR/JPY reclaims the Tenkan-Sen at 157.59, that could pave the way to test the Senkou-Span A line at 157.88. Up next would be 158.00.
The EUR/JPY is bearish on the hourly chart, with the cross exchanging hands below the Kumo, while the Tenkan-Sen sits below the Kijun-Sen. However, as price action seems overextended, the pair is subject to a mean reversion move towards the Tenkan-Sen at 157.30 before resuming its downtrend towards the September 28 low of 156.70, followed by the 156.00 figure.
EUR/JPY Price Action – Hourly chart
EUR/JPY Key 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.
