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.

Christian Borjon Valencia FXStreet

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

EUR/JPY

Overview
Today last price	158.35
Today Daily Change	1.91
Today Daily Change %	1.22
Today daily open	156.44

Trends
Daily SMA20	156.4
Daily SMA50	159.3
Daily SMA100	158.62
Daily SMA200	155.24

Levels
Previous Daily High	156.79
Previous Daily Low	155.25
Previous Weekly High	158.39
Previous Weekly Low	155.65
Previous Monthly High	161.78
Previous Monthly Low	153.17
Daily Fibonacci 38.2%	156.2
Daily Fibonacci 61.8%	155.84
Daily Pivot Point S1	155.53
Daily Pivot Point S2	154.62
Daily Pivot Point S3	153.99
Daily Pivot Point R1	157.07
Daily Pivot Point R2	157.7
Daily Pivot Point R3	158.61

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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