EUR/JPY Price Analysis: Pullbacks from YTD high, on Japanese authorities intervention threats
- EUR/JPY retreats from YTD highs following the Japanese Finance Minister’s intervention threats, ending Tuesday’s session down by 0.47%.
- The pair maintains its uptrend but struggles to break decisively above the 158.00 mark, raising concerns about further downside potential.
- Key supports and resistances lie at 156.52 and 157.99, respectively, with further levels determined by market reactions.
EUR/JPY retreats from year-to-date (YTD) highs of 157.99 and falls toward the 157.10s area on the Japanese Minister of Finance’s threats to intervene in the Forex markets. That bolstered the Japanese Yen (JPY); hence, the EUR/JPY finished Tuesday’s session with losses of 0.47%. As Wednesday’s Asian session begins, the EUR/JPY exchanges hands at 157.15, printing minuscule gains of 0.02%.
EUR/JPY Price Analysis: Technical outlook
The EUR/JPY uptrend remains intact, though the cross-currency pair cannot break above the 158.00 figure decisively. A couple of days ago, the EUR/JPY dipped to 156.67 before re-testing the 158.00 figure, though the pair peaked at around 157.90. After that, the EUR/JPY extended its losses toward the daily low of 157.11 but remained well above the first support level, the 157.00 mark.
If EUR/JPY tumbles below the figure, the next support would be the Tenkan-Sen line at 156.52. A breach of the latter will clear the path toward the confluence of the June 23 daily low and the Senkou Span A at 155.05/154.90, followed by the June 20 daily low of 154.04.
Conversely, if EUR/JPY resumes its uptrend, the first resistance would be the year-to-date (YTD) high of 157.99, followed by the August 2008 swing low turned resistance at 159.21.
EUR/JPY Price Action – Daily chart
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.
