- EUR/JPY's marginal decline influenced risk aversion, as the pair fluctuates within a narrow range.
- Downward trend persists, with potential supports at Tenkan-Sen (157.03), Kijun-Sen (156.42), and 156.00 level.
- Buyers aim to overcome hurdles at 158.00 and 159.00, targeting Ichimoku Cloud bottom for a possible upward shift.
The Euro posts minuscule losses after seesawing in an 80 pip range on Tuesday, with the EUR/JPY trading at 157.91, down 0.01% due to investors turning risk averse, as safe-haven currencies rose.
The downtrend has extended for the second straight day, though the EUR/JPY jumped from around the Tenkan-Sen, sitting at 157.03. nevertheless, the path of least resistance is downward, and if sellers would like to regain control, they must push prices lower.
Therefore, the first support would be the Tenkan-Sen, followed by the 157.00 figure. Once cleared, the next demand area is seen at the Kijun-Sen at 156.42. if bears reclaim that level, they could challenge 156.00.
On the other hand, although the pair failed to print a new daily high in the day, buyers remain hopeful of lifting the cross pair. For them, the first resistance would be the 158.00 figure, followed by the 159.00 mark. A breach of the latter would expose the bottom of the Ichimoku Cloud (Kumo) at around the 159.30/50 area, followed by 160.00.
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 extends the decline to near 0.6350 as Fed rate decision looms
The AUD/USD pair extends its downside to near 0.6355 during the early Asian session on Monday, pressured by the firmer Greenback. Traders will keep an eye on the preliminary US December Purchasing Managers Index on Monday ahead of the Federal Reserve interest rate decision.
USD/JPY bulls turn cautious ahead of Fed/BoJ policy meetings this week
USD/JPY kicks off the new week on a weaker note and now seems to have snapped a five-day winning streak to over a two-week high touched on Friday. That said, expectations for a less dovish Fed and diminishing odds for a BoJ rate hike should support the currency pair.
Gold price consolidates as traders seem reluctant ahead of Fed meeting
The Gold price oscillates around the $2,650 area as traders keenly await the outcome of the crucial FOMC meeting for cues about the future rate-cut path and before placing fresh directional bets. In the meantime, geopolitical risks and trade war fears could support the safe-haven precious metal, though bets for a less dovish Fed should cap the upside.
Week ahead: Fed, BoJ and BoE conclude end-year policy decisions
Fed seen cutting in December, pausing in January. BoJ leans towards keeping rates steady. BoE seen ending 2025 on the sidelines as well. Flash PMIs, UK and Canada CPIs, and core PCE also on tap.
Can markets keep conquering record highs?
Equity markets are charging to new record highs, with the S&P 500 up 28% year-to-date and the NASDAQ Composite crossing the key 20,000 mark, up 34% this year. The rally is underpinned by a potent mix of drivers.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.