EUR/JPY Price Analysis: Falls to two-day lows below 159.00, as bears loom

EUR/JPY's loss may indicate a bearish shift, with a possible close below Ichimoku Cloud signaling further downtrend.
Immediate support levels include 159.50 and Tenkan-Sen at 157.62, with significant downside risk at Kijun Sen at 156.64.
For a bullish reversal, EUR/JPY needs to stay above Senkou Span B at 158.71, targeting 159.00 and 160.18.

Christian Borjon Valencia FXStreet

The Euro (EUR) is at the brink of turning decisively bearish against the Japanese Yen (JPY), printing losses of 0.44% on Friday, though set to finish the week with 0.26% gains. Nevertheless, as price action cracks inside the Ichimoku Cloud (Kumo), sellers pressure the pain, which, if it prints a daily close below the Kumo, would pave the way for further losses. The EUR/JPY trades at 158.61, after hitting a high of 159.57.

As mentioned above, EUR/JPY bears are gathering momentum, which could extend if they reclaim the December 19 swing high of 159.57, which could pave the way for breaking the next support seen at the 159.50 area, the bottom of the Kumo. In that outcome, the cross-pair could plunge sharply and challenge the Tenkan-Sen at 157.62, followed by the Senkou Span A at 157.14. Further downside is seen at the Kijun Sen at 156.64.

On the flip side, if buyers' momentum increases, and they keep the EUR/JPY above the Senkou Span B at 158.71, that could sponsor a move toward the 159.00 mark Once broken, the next intermediate resistance level would be the January 11 high at 160.18.

EUR/JPY Price Action – Daily Chart

EUR/JPY Technical Levels

EUR/JPY

Overview
Today last price	158.68
Today Daily Change	-0.85
Today Daily Change %	-0.53
Today daily open	159.53

Trends
Daily SMA20	157.14
Daily SMA50	159.24
Daily SMA100	158.65
Daily SMA200	155.68

Levels
Previous Daily High	160.18
Previous Daily Low	159.38
Previous Weekly High	159
Previous Weekly Low	155.07
Previous Monthly High	161.78
Previous Monthly Low	153.17
Daily Fibonacci 38.2%	159.69
Daily Fibonacci 61.8%	159.88
Daily Pivot Point S1	159.21
Daily Pivot Point S2	158.9
Daily Pivot Point S3	158.41
Daily Pivot Point R1	160.01
Daily Pivot Point R2	160.5
Daily Pivot Point R3	160.81

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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