- EUR/JPY slips inside the Ichimoku Cloud after maintaining levels above it for the past three sessions.
- The pair breaches the October 12 low of 157.64, with potential further descent towards crucial support levels identified around 156.49/47, 156.00 mark, and Kumo’s bottom at 155.55/60.
- For upward momentum, the EUR/JPY needs to reclaim the 158.00 level to challenge the top of the Kumo at 158.05/10.
EUR/JPY finally dropped inside the Ichimoku Cloud (Kumo) after flirting during the last three trading days, with the cross-currency pair printing back-to-back days of losses. As we head into the weekend, the pair trades at 157.08, down 0.35%.
The daily chart shows the EUR/JPY drifting lower, below the October 12 low of 157.64, extending its losses toward the figure. A breach of the latter and the cross would drop to the confluence of the Kijun and Tenkan-Sen levels at around 156.49/47, followed by the 156.00 psychological level. If those demand areas are taken, the bottom of the Kumo at 155.55/60, emerges as the last line of defense for bulls before the pair turns bearish.
On the flip side, if EUR/JPY buyers step in, they must claim the 158.00 mark, before cracking the top of the Kumo at 158.05/10. Once cleared, the next resistance would be the October 12 swing high at 158.61, before climbing toward 159.00.
EUR/JPY Price Action – Daily chart
EUR/JPY Technical Levels
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD stays directed toward 0.6700 after strong Aussie data, weak China's PMI
AUD/USD holds higher ground toward 0.6700 in Asian trading on Wednesday. The pair finds fresh bullish impetus after the Australian Retail Sales data beat estimates with 0.6% YoY in May. Weak China's Caixin Services PMI data fails to deter Aussie buyers. Eyes turn to US data and Fed Minutes.
USD/JPY extends gains above 161.50 ahead of US data, Fed Minutes
USD/JPY trades on a stronger note above 161.50 after reaching a new high for this move near 161.75 during the early Asian trading hours on Wednesday. Market players remain focused on the possible Japanese FX intervention, which could cap the pair’s upside. US data and Fed Minutes awaited.
Gold price remains confined in a range below 50-day SMA, FOMC minutes in focus
Gold price continues with its struggle to gain any meaningful traction on Wednesday. Traders seem reluctant and prefer to wait for more cues about the Fed’s rate-cut path. Investors look to FOMC minutes for some impetus ahead of the NFP report on Friday.
Celebrity meme coins controversy continues amid Pump.fun revenue dominance
Meme coin generation platform Pump.fun outperformed the Ethereum blockchain in daily revenue on Tuesday after raking in $1.99 million. Following this achievement, a celebrity meme coin based on actress Sydney Sweeney was the subject of controversy after its developers dumped their bags on investors.
Benefit of the doubt: US consumer confidence and elections
Despite widespread expectation for the US economy to be in recession in 2024, that fate has been avoided thanks to a resilient consumer. Yet it is difficult to square this undaunted spending with consumer confidence and sentiment readings that are lackluster at best.