EUR/JPY Price Analysis: Failure at 160.00 paints bearish bias as evening-star emerges

EUR/JPY falls as 'evening star' pattern suggests potential reversal.
Dip below 160.00 and Tenkan-Sen (159.52) indicates momentum shift; 159.00 next support with further declines might eyeing Ichimoku Cloud top.
Recovery above Tenkan-Sen may target 160.00 again, with 161.87 as potential high.

Christian Borjon Valencia FXStreet

The EUR/JPY drops from around weekly highs reached on Monday at 160.27 and forms a three-candle ‘evening star’ chart pattern, that opens the door for further losses. At the time of writing, the cross-pair exchanges hands at 159.05, down 0.42%.

The bullish bias is at risk with the pair sliding below crucial support levels. As sellers pushed the exchange rate below the 160.00 figure and the Tenkan-Sen level at 159.52, the first support emerging is 159.00, followed by the top of the Ichimoku Cloud (Kumo) at 158.73. If those two levels are cleared, the next support emerges at the confluence of a support trendline, the Senkou Span B and the Kijun Sen, at around 158.40/48.

On the other hand, if EUR/JPY buyers lift the exchange rate towards the Tenkan-Sen, that could open the door to challenge the 160.00 psychological level. A breach of the latter will expose the current year-to-date (YTD) high at 161.87.

EUR/JPY Price Action – Daily Chart

EUR/JPY Key Technical Levels

EUR/JPY

Overview
Today last price	159.02
Today Daily Change	-0.66
Today Daily Change %	-0.41
Today daily open	159.68

Trends
Daily SMA20	160.04
Daily SMA50	158.5
Daily SMA100	159.01
Daily SMA200	156.79

Levels
Previous Daily High	160.28
Previous Daily Low	159.38
Previous Weekly High	160.84
Previous Weekly Low	158.08
Previous Monthly High	161.87
Previous Monthly Low	155.07
Daily Fibonacci 38.2%	159.72
Daily Fibonacci 61.8%	159.94
Daily Pivot Point S1	159.29
Daily Pivot Point S2	158.89
Daily Pivot Point S3	158.4
Daily Pivot Point R1	160.18
Daily Pivot Point R2	160.67
Daily Pivot Point R3	161.07

Author

Christian Borjon Valencia

FXStreet

Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.

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