EUR/JPY Price Analysis: Rallies to a four-day high, above 158.00
- EUR/JPY touches a four-day high of 158.26, buoyed by a sharp rally in EUR/USD, before settling around 158.05.
- Despite breaching the Ichimoku Cloud, immediate resistances at 158.47 and 158.65 cap further upward momentum.
- Potential downside could see the pair target 156.45, with further declines possibly testing the October 3 low of 154.34.
EUR/JPY prints solid gains of more than 0.90% on Friday after the EUR/USD rallied sharply towards a daily high of 1.0600, which lifted the cross-currency pair towards a four-day high of 158.26 before reversing toward current exchange rates at around 158.05.
From a technical perspective, the EUR/JPY remains consolidated in the daily chart despite breaking above the Ichimoku Cloud (Kumo), which is usually seen as a bullish signal, but immediate resistance would cap the Euro’s intentions of higher prices. If the pair aims higher, the first resistance is seen at the October 2 high of 158.47, followed by the September 13 daily high of 158.65, before challenging 159.00
On the flip side, if EUR/JPY drops inside the Kumo, it could dive towards the Senkou Span A at 156.45 before challenging the bottom of the Kumo at 156.49. Once those two levels are cleared, the pair could aim towards the October 3 daily/weekly low of 154.34.
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.
