EUR/JPY Price Analysis: Hits two-day high around the Kumo but remains bearish

• EUR/JPY hovers at around 157.30s, after rallying close to 1%, stalls at confluence of resistance levels.
• Failure to break above 157.70 would pave the way to re-test 154.00.

The EUR/JPY climbs close to 0.90% at the beginning of the week and tests a previous support trendline turned resistance at around the 157.20/30 area. Even though the pair is posting solid gains, it remains downward biased, as price action is below the Ichimoku Cloud (Kumo). That along the Chikou Span crossing below price action and the Tenkan-Sen crossing below the Kijun-Sen cements the bearish bias.

That said, EUR/JPY buyers need to reclaim the confluence of the Tenkan-Sen and the bottom of the Kumo at 157.60, followed by the Senkou Span A at 158.19. Further upside is seen above those two levels, at around the 159.00 figure.

For a bearish resumption, sellers must keep prices from breaching the Kumo. In that outcome, the first support would be the 157.00 mark, followed by the December 11 low of 155.86, followed by the December 8 swing low of 153.86.

EUR/JPY Price Analysis – Daily Chart

EUR/JPY Technical Levels