- 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.
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
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