EUR/JPY Price Analysis: Holds steady above 160.00, as bull target 161.00
- EUR/JPY advance is tempered by proximity to the year-to-date high of 160.84, with a break above potentially signaling further gains.
- The threat of Japanese intervention has receded, providing room for the pair's upward trajectory.
- Key support levels to watch include the Tenkan-Sen at 159.26 and a stronger confluence of support around 157.59/69.
The EUR/JPY extends its gains to two straight days, remaining above the 160.00 figure ahead of the weekend, amid an upbeat market sentiment. Economic data shows hiring is slowing down, as the US Nonfarm Payrolls for October missed forecasts, spurring a risk-on mood in the financial markets. At the time of writing, the cross-pair exchanges hands at 160.25, gains 0.29%.
Even though the pair is trading near cycle highs, it remains shy of climbing past the year-to-date (YTD) high at 160.84, which, once cleared, could open the door for further upside. In that case, a pullback could justify long traders, as Japanese intervention threats, calmed. A breach of the latter would expose the 161.00 handle.
Contrarily, if EUR/JPY drops below the Tenkan-Sen at 159.26, the trend would be skewed to the downside. Next support would emerge at the confluence of the October 30 low and the Tenkan-Sen at around 157.59/69, followed by the bottom of the Ichimoku Cloud at 155.55.
EUR/JPY Price Chart – Daily
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.
