EUR/JPY Price Analysis: Slips below 169.00 amid political turmoil
- EUR/JPY trades at 168.43, marking the second consecutive day of losses due to political uncertainty in France.
- Technical outlook: Consolidation below 170.00 with potential further losses if price drops below the 50-DMA at 167.47.
- Key support levels: Kumo bottom at 165.92 and 100-DMA at 164.78, indicating acceleration of the downtrend if breached.
The Euro tumbled for the second straight day against the Japanese Yen due to political uncertainty. France's presidential approvals plunged to their lowest level in five years ahead of the General Elections. The EUR/JPY trades at 168.43, down 0.08%.
EUR/JPY Price Analysis: Technical outlook
After peaking around 170.00, EUR/JPY has consolidated below this level but remains above the Ichimoku Cloud (Kumo), which would accelerate the downtrend if breached.
The Relative Strength Index (RSI) indicates that sellers are gaining momentum as it falls below the 50-line, suggesting that EUR/JPY could face further losses.
If EUR/JPY drops below the 50-day moving average (DMA) of 167.47, it could trigger a decline into the Kumo, signaling an acceleration of the downtrend. The next support would be the bottom of the Kumo at 165.92, followed by the 100-DMA at 164.78.
EUR/JPY Price Action - Daily Chart
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.
