- EUR/JPY’s advance is moderated by the proximity to the year-to-date high of 160.84, and a break above could signal further gains.
- The threat of Japanese intervention has receded, giving room for the pair’s upward trajectory.
- Key support levels to watch include the Tenkan-Sen at 159.26 and a further confluence of support around 157.59/69.
The pair EUR/JPY extends its gains to two consecutive days, staying above 160.00 heading into the weekend, amid optimistic sentiment in the markets. Economic data shows a slowdown in hiring as US Nonfarm Payrolls for October disappointed forecasts, spurring risk appetite in financial markets. At the time of writing, the pair is trading at 160.25, with a gain of 0.29%.
Although the pair is trading near cycle highs, it has yet to surpass the year-to-date high (160.84), which, once surpassed, could open the door to further rises. In that case, a pullback could justify long traders as threats of Japanese intervention subside. A break of this last level would expose the 161.00 area.
On the contrary, if EUR/JPY falls below the Tenkan-Sen at 159.26, the trend would tilt downwards. Next support would be the confluence of the October 30 low and the Tenkan-Sen around 157.59/69, followed by the bottom of the Ichimoku Cloud at 155.55.
EUR/JPY Daily Chart
Key technical levels for EUR/JPY
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
