EUR/JPY Price Analysis: Uptrend stalls at 159.00, as buyers target 159.70s YTD high

EUR/JPY climbs for the second straight day, breaking above 158.92, but closes at 158.74.
BoJ's ultra-loose monetary policy pressures JPY, while positive EU data reduces a possible ECB rate hike.
Technical analysis shows potential for further gains, with YTD high at 159.76 as next target for buyers.

Christian Borjon Valencia FXStreet

EUR/JPY climbed for the second straight day, breaking above last Thursday’s high of 158.92, though it retreated some and printed a daily close of 158.74, registering gains of 0.19%.

The fundamental backdrop has not changed, as risk aversion was the price action driver during the week, while the Bank of Japan’s (BoJ) commitment to its ultra-loose monetary policy pressured the Japanese Yen (JPY). Meanwhile, the Eurozone’s (EU) more positive economic data has pushed aside the likelihood of a European Central Bank (ECB) rate hike, but the Euro (EUR) is not out of the woods yet. Recessionary fears loom, along with inflation twice the ECB’s target, increased speculations for a stagflationary scenario.

From a technical perspective, the EUR/JPY’s lack of clear direction keeps the pair trading sideways, though slightly tilted to the upside. If the cross-pair breaks above 159.00, buyers could test the year-to-date (YTD) high at 159.76.

Conversely, if EUR/JPY sellers moved in, the first support would be the 158.00 figure, immediately followed by the top of the Ichimoku Cloud (Kumo) at 157.75/95. Once cleared, the cross would drip inside the Kumo, indicating sellers gathering momentum, with the next support seen at the Tenkan Sen at 157.85, followed by the Kijun-Sen at 156.64.

EUR/JPY Price Action – Daily chart

EUR/JPY Technical Levels

EUR/JPY

Overview
Today last price	158.74
Today Daily Change	0.23
Today Daily Change %	0.15
Today daily open	158.51

Trends
Daily SMA20	157.56
Daily SMA50	157.93
Daily SMA100	156.54
Daily SMA200	150.63

Levels
Previous Daily High	158.93
Previous Daily Low	157.68
Previous Weekly High	158.61
Previous Weekly Low	156.51
Previous Monthly High	158.66
Previous Monthly Low	156.58
Daily Fibonacci 38.2%	158.45
Daily Fibonacci 61.8%	158.16
Daily Pivot Point S1	157.82
Daily Pivot Point S2	157.13
Daily Pivot Point S3	156.57
Daily Pivot Point R1	159.07
Daily Pivot Point R2	159.63
Daily Pivot Point R3	160.32

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.

AUD/USD remains confined in a range above 0.7100

AUD/USD extends its consolidative price move above 0.7100 through the Asian session on Tuesday, shrugging off hawkish comments from RBA Assistant Governor Sarah Hunter as traders keenly await the crucial Trump-Xi summit later this week. Meanwhile, escalating tensions in the Middle East and the Fed's hawkish outlook remain supportive of the bullish US Dollar undertone, capping spot prices.

USD/JPY bulls seem cautious below 157.50 as JPY intervention risks loom

USD/JPY consolidates below mid-157.00s during the Asian session on Tuesday as intervention fears help limit losses for the Japanese Yen. However, the BoJ's dovish rate hike to a 31-year high keeps JPY bulls on the back foot. At the same time, the US Dollar retains its bullish undertone amid the Fed's hawkish outlook and escalating Middle East tensions, acting as a tailwind for the pair.

Gold benefits from falling US bond yields; remains below $4,400 amid bullish USD

Gold regains positive traction during the Asian session on Tuesday, though it lacks bullish conviction and remains below $4,400. Falling oil prices ease inflation fears, dragging US bond yields lower and supporting the non-yielding yellow metal. Meanwhile, the Fed's hawkish stance, along with escalating Middle East tensions, keeps the US Dollar near its highest level since late July and acts as a headwind for the bullion.

Ethereum rallies above $2,700 as investors shrug off bearish sentiment

Ethereum (ETH) climbed above $2,700 on Monday after investors defended the realized price level despite negative sentiment over the Clarity Act's failure and the Federal Reserve rate hike. After the Clarity Act failed to advance in the Senate, ETH dipped below $2,400 last week. But right below that price is the top altcoin's realized price, or average on-chain cost basis, at $2,310.

The week ahead: Fuel prices in focus as we lead up to key eco releases

Financial markets are in a strange position as we move to the final weeks of Q3, uncertainty and volatility continue to grip markets, but the oil price is falling; and European and US stocks are poised to open higher later on Monday. Market stresses are concentrated in sovereign bonds, and European and US yields had another scare late on Friday, and moved higher.

BoJ Recap: Not as hawkish as expected

The Bank of Japan (BoJ) raised its short-term interest-rate target to 1.25% from 1.00% in a 7-2 vote, marking another step in the normalisation of monetary policy and widely matching what everyone has been expecting for weeks.