EUR/JPY Price Analysis: Surges above 158.00, but downtrend remains intact
- EUR/JPY's rallies but the bearish bias remains in place
- Technical outlook shows potential resistance near 158.35, with 159.00 and 160.00 as subsequent targets on a break higher.
- Sellers could target supports at Kijun-Sen, Tenkan-Sen, and the January 2 low at 155.06.
The EUR/JPY rallied on Thursday by more than 1%, but it remains below the Ichimoku Cloud (Kumo), meaning that its bearish bias stays intact. Nevertheless, if the cross-pair achieves a daily close above the December 19 swing high of 158.59, could pave the way to challenge the 159.00 figure. At the time of writing, the pair is trading at 158.34
From a technical standpoint, the EUR/JPY daily chart depicts the pair as neutral to downward biased, following the drop from the November 16 high of 164.31, towards the December 7 low of 153.11. Since then, the pair has edged upwards but remains unable to crack resistance at around the 158.35 area. A breach of the latter would expose the 159.00 figure, followed by the 160.00 figure.
If EUR/JPY sellers regain control, the first support they will face would be the Kijun-Sen at 157.68. Once cleared, the next support would be the Tenkan-Sen at 156.83, followed by the January 2 low of 155.06.
EUR/JPY Price Action – Daily Chart
EUR/JPY Key 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.
