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.
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
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.
