EUR/JPY Price Analysis: Post gains amid risk-off mood, peaks around 161.00
- EUR/JPY up 0.73%, influenced by risk-off sentiment and expectations of delayed rate cuts by major banks.
- Upward trend faces resistance at 161.24; breach could target 162.00 level.
- Downside risks for EUR/JPY below 161.00, with supports at 159.95 and key confluence at 159.23.
The Euro (EUR) rose sharply against the Japanese Yen (JPY) on Wednesday, up 0.73% amid a risk-off impulse and economic data suggesting that major central banks would deter cutting rates in the near term. At the time of writing, the EUR/JPY trades at 161.12, posting minuscule losses of 0.07% as Thursday’s Asian session begins.
From a technical standpoint, the EUR/JPY daily chart portrays the pair as upward biased, extending its gains past the 161.00 figure, but its advance was capped at previous support turned resistance at around 161.24, the November 21 swing low. A breach of the latter will expose the 162.00 figure, followed by the November 27 high at 163.72.
On the flip side, if sellers drag the EUR/JPY below the 161.00 mark, that can pave the way for further losses. But they would face immediate support at the January 17 low of 159.95, followed by the confluence of the January 16 daily low and the Tenkan-Sen at around 159.23, ahead of the Senkou Span B at 158.71
EUR/JPY Price Action – Daily Chart
EUR/JPY 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.
