EUR/JPY Price Analysis: Wavers around 161.00, sellers eyeing Tenkan-Sen
- EUR/JPY near 161.00, down 0.13% as Euro faces pressure before ECB decision in mixed markets.
- Despite Ichimoku Cloud break, bulls struggle at 161.24 resistance; eyes on 162.00, then 163.00 if surpassed.
- Below 161.00, EUR/JPY risk extends; next supports at Tenkan-Sen (160.21), 160.00, 159.25, 158.71.
The EUR/JPY seesaws at around the 161.00 figure in the mid-North American session, though it’s trading below its opening price by 0.13% and, at the time of writing, exchanges hands at 160.95.
Market mood is mixed, with two out of three US equity indices in the green, with the Dow Jones being the outlier, down by 0.32%. Nevertheless, the Euro’s weakness keeps the shared currency pressured ahead of Thursday's European Central Bank (ECB) monetary policy decision
The EUR/JPY is consolidating at around the current week's highs after buyers lifted the pair above the Ichimoku Cloud (Kumo), usually a sign that bulls are gathering momentum. Nevertheless, they had failed to edge above the November 21 swing low turned resistance at 161.24, so they could challenge the 162.00 figure. Once those two levels are cleared, the next stop would be the 163.00 figure, followed by the November 27 high at 163.72.
On the other hand, a daily close below 161.00 would open the door for further losses. The first support would be the Tenkan-Sen at 160.21, followed by the 160.00 figure. A breach of the latter, and the pair will extend its losses to the Senkou Span A at 159.25, followed by the Senkou Span B at 158.71.
EUR/JPY Price Action – Daily Chart
EUR/JPY 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.
