EUR/JPY Price Analysis: Remains subdued, capped by a bearish-harami candle pattern

EUR/JPY hovers at 157.66, seeking direction amidst a prevailing consolidation phase.
Upside capped by Ichimoku Cloud; a breach of 158.26 needed to target September highs.
Bearish signals from Chikou Span and Tenkan-Kijun cross may direct focus towards 156.40/49.

Christian Borjon Valencia FXStreet

EUR/JPY traded sideways for the second straight day, though it printed gains of 0.52% on Tuesday and closed at 157.70. As Wednesday’s Asian Pacific session begins, the cross-currency pair is trading at 157.66, registering minuscule losses of 0.02%, at the time of writing.

Although the daily chart shows the pair remains in consolidation, it remains tilted to the downside as it has failed to record higher highs, since October 6 at 158.26. A breach of the latter is needed, which would put into play, the next cycle high printed on September 13 daily high at 158.65.

Consequently, the EUR/JPY is capped on the upside by the top of the Ichimoku Cloud (Kumo), which if broken could pave the way for further upside. Nevertheless, price action is tracking the top of the Kumo, and with market sentiment being fragile and the Chikou Span crossing below price action, a bearish signal, the pair could test the bottom of the Kumo at 155.50/60. Additionally, the Tenkan-Sen crossing below the Kijun-Sen could act as a magnet, and price action aims towards the 156.40/49 area.

EUR/JPY Price Action – Daily chart

EUR/JPY Technical Levels

EUR/JPY

Overview
Today last price	157.64
Today Daily Change	0.69
Today Daily Change %	0.44
Today daily open	156.95

Trends
Daily SMA20	157.48
Daily SMA50	157.8
Daily SMA100	155.89
Daily SMA200	149.94

Levels
Previous Daily High	158.1
Previous Daily Low	156.51
Previous Weekly High	158.48
Previous Weekly Low	154.39
Previous Monthly High	158.66
Previous Monthly Low	156.58
Daily Fibonacci 38.2%	157.12
Daily Fibonacci 61.8%	157.49
Daily Pivot Point S1	156.27
Daily Pivot Point S2	155.6
Daily Pivot Point S3	154.69
Daily Pivot Point R1	157.86
Daily Pivot Point R2	158.77
Daily Pivot Point R3	159.45

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.

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