EUR/JPY Price Analysis: Technical correction has further legs to go

EUR/JPY adds to Friday’s pullback around 156.40.
Further upside could target the weekly top past 163.00.

Pablo Piovano FXStreet

EUR/JPY faces some renewed downside pressure and retreats from recent multi-year peaks in levels just shy of the 157.00 barrier.

In the meantime, further gains appear on the cards, while a clear breakout of the 2023 high at 156.93 (June 22) should meet the next relevant hurdle not before the weekly high of 163.09 (August 22 2008).

The ongoing overbought conditions of the cross, however, are indicative that a deeper knee-jerk should not be ruled out at some point in the short-term horizon.

So far, further upside looks favoured while the cross trades above the 200-day SMA, today at 144.82.

EUR/JPY daily chart

EUR/JPY

Overview
Today last price	156.38
Today Daily Change	98
Today Daily Change %	-0.17
Today daily open	156.65

Trends
Daily SMA20	151.89
Daily SMA50	149.87
Daily SMA100	146.62
Daily SMA200	144.8

Levels
Previous Daily High	156.83
Previous Daily Low	155.06
Previous Weekly High	156.93
Previous Weekly Low	154.05
Previous Monthly High	151.62
Previous Monthly Low	146.14
Daily Fibonacci 38.2%	155.73
Daily Fibonacci 61.8%	156.15
Daily Pivot Point S1	155.53
Daily Pivot Point S2	154.41
Daily Pivot Point S3	153.76
Daily Pivot Point R1	157.3
Daily Pivot Point R2	157.95
Daily Pivot Point R3	159.07

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

Editor's Picks

EUR/USD drops to daily lows near 1.1630

EUR/USD now loses some traction and slips back to the area of daily lows around 1.1630 on the back of a mild bounce in the US Dollar. Fresh US data, including the September PCE inflation numbers and the latest read on December consumer sentiment, didn’t really move the needle, so the pair is still on course to finish the week with a respectable gain.

GBP/USD trims gains, recedes toward 1.3320

GBP/USD is struggling to keep its daily advance, coming under fresh pressure and retreating to the 1.3320 zone following a mild bullish attempt in the Greenback. Even though US consumer sentiment surprised to the upside, the US Dollar isn’t getting much love, as traders are far more interested in what the Fed will say next week.

Gold makes a U-turn, back to $4,200

Gold is now losing the grip and receding to the key $4,200 region per troy ounce following some signs of life in the Greenback and a marked bounce in US Treasury yields across the board. The positive outlook for the precious metal, however, remains underpinned by steady bets for extra easing by the Fed.