EUR/JPY Price Analysis: Fails to stay above 157.00 as strong resistance emerged
- EUR/JPY slips below 157.00 as sentiment shifts negatively, ahead of the Fed’s.
- The pair is bearishly biased and could extend its losses below the 156.00 figure.
- However, upside risks remain, with the 157.48 as key resistance to get towards 158.00.
The EUR/JPY cross pair retraces from daily highs reached earlier at around 157.48 and tumbled below the 157.00 figure as market participants get ready for the central bank bonanza, starting with the US Federal Reserve on Wednesday. At the time of writing, the pair is trading at 156.58, down 0.24%-
The pair is downward biased once it breaches below the Ichimoku Cloud (Kumo), and also with the Tenkan-Sen turning bearish, dropping below the Kijun-Sen. In addition, the EUR/JPY has failed to regain a five-month-old previous support trendline turned resistance.
In the outcome of a bearish resumption, the EUR/JPY first support would be 156.00, followed by December’s 8 daily low of 153.86, followed by the December 7 swing low of 153.11.
On the flip side, if the pair edged higher, the first resistance is seen at 157.48, followed by the bottom of the Kumo at around 158.00. Once the pair gets inside the Kumo, the Senkou Span B and the Kijun-Sen confluence would be the next supply zone at 158.41.
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.
