EUR/JPY Price Analysis: Looms around 7-week high as buyers cling to 161.00
- EUR/JPY slightly down at 161.15, hovering near 7-week high of 161.86, buoyed by positive sentiment.
- Technical view: Break above 161.87 could lift EUR/JPY to 162.00, eyeing November peaks at 163.72, 164.31.
- Downside risk: Falling below 160.81, 160.64 may push EUR/JPY to pivotal 160.00, with supports at 159.81, 158.71.
The EUR/JPY retreated by 0.14% on Monday, still meandering at around the 7-week high hit last week at around 161.86, as buyers cling to the 161.00 figure amid a risk-on environment. At the tie of writing, the pair exchanges hands at 161.15.
The EUR/JPY daily chart portrays the pair is consolidating above the 161.00 figure, though capped at around 161.87, the January 19 high. If buyers reclaim that level, that could open the door to challenge the 162.00 figure, followed by the November 27 high at 163.72. A breach of the latter will expose the November 16 high at 164.31.
Conversely, if sellers push prices below the January 19 low of 160.81, followed by the January 18 low of 160.64, that could push prices below the 160.00 figure to challenge the Tenkan-Sen at 159.81. Further downside is seen below that level, at 158.97, the Senkou Span A, and the Senkou Span B at 158.71.
EUR/JPY Price Action – Daily Chart
EUR/JPY Key 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.
