EUR/JPY Price Analysis: Pullbacks from YTD high, on Japanese authorities intervention threats
|- EUR/JPY retreats from YTD highs following the Japanese Finance Minister’s intervention threats, ending Tuesday’s session down by 0.47%.
- The pair maintains its uptrend but struggles to break decisively above the 158.00 mark, raising concerns about further downside potential.
- Key supports and resistances lie at 156.52 and 157.99, respectively, with further levels determined by market reactions.
EUR/JPY retreats from year-to-date (YTD) highs of 157.99 and falls toward the 157.10s area on the Japanese Minister of Finance’s threats to intervene in the Forex markets. That bolstered the Japanese Yen (JPY); hence, the EUR/JPY finished Tuesday’s session with losses of 0.47%. As Wednesday’s Asian session begins, the EUR/JPY exchanges hands at 157.15, printing minuscule gains of 0.02%.
EUR/JPY Price Analysis: Technical outlook
The EUR/JPY uptrend remains intact, though the cross-currency pair cannot break above the 158.00 figure decisively. A couple of days ago, the EUR/JPY dipped to 156.67 before re-testing the 158.00 figure, though the pair peaked at around 157.90. After that, the EUR/JPY extended its losses toward the daily low of 157.11 but remained well above the first support level, the 157.00 mark.
If EUR/JPY tumbles below the figure, the next support would be the Tenkan-Sen line at 156.52. A breach of the latter will clear the path toward the confluence of the June 23 daily low and the Senkou Span A at 155.05/154.90, followed by the June 20 daily low of 154.04.
Conversely, if EUR/JPY resumes its uptrend, the first resistance would be the year-to-date (YTD) high of 157.99, followed by the August 2008 swing low turned resistance at 159.21.
EUR/JPY Price Action – Daily chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.