EUR/JPY Price Analysis: Rebounds at 4-week low, as dragonfly doji looms
- EUR/JPY hovers shy of the 160.00 figure after printing weekly lows at around 158.70s-
- The pair remains bullish above the Kumo, but it could cement its bias above 160.00.
- If the cross drops below 159.00, further downside is expected.
EUR/JPY exchanges hand with minuscule losses, late in the Monday North American session, down by just 0.13% after registering earlier losses of 0.50%. At the time of writing, the cross-pair is trading at 159.50.
During the session, the pair hovered around the top of the Ichimoku Cloud (Kumo) as it printed a four-week low at around 158.71 before reversing its course, with buyers reclaiming the 159.00 figure. Even though a ‘dragonfly doji’ is forming, EUR/JPY buyers must reclaim the 159.84 December 4 daily high, so they could threaten to challenge the 160.00 figure. From a price action standpoint, upside risks remain with the pair standing above the Kumo.
Next resistance is seen at the Kijun-Sen at 161.00 before buyers reclaim the Tenkan-Sen at 161.21. Nevertheless, a bearish resumption could happen if sellers push prices toward the 159.00 figure, ahead of testing the top of the Kumo at 158.00.
EUR/JPY Price Analysis – 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.
