EUR/JPY Price Analysis: Clings to 160.00 as ‘hammer’ surfaces after EU’s data

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  • EUR/JPY edges up after robust Euro area GDP figures and subdued Japanese inflation impact market sentiment.
  • Technical analysis suggests a potential move towards the Tenkan-Sen at 160.54, with 161.00 and January 19 high at 161.87 as key resistance levels.
  • Downward pressure remains a risk, with crucial support near the 159.50 - 159.70 range and further potential decline towards 159.00 and 158.47.

The EUR/JPY advances modestly on Tuesday, and buyers recover the psychological 160.00 figure. Solid GDP data from the Euro area, along with lower-than-expected inflation data in Japan, eases the pressure off the Bank of Japan (BoJ) to end its ultra-loose policy. At the time of writing, the pair exchanges hands at 160.08, after hitting a daily low of 159.21.

The pair is neutral biased as the daily chat portrays. But, the recent fundamental news, along with an improvement in risk appetite, could pave the way to test resistance at the Tenkan-Sen at 160.54. A decisive break could sponsor a leg-up to the 161.00 mark before buyers step in and lift the exchange rate toward January’s 19 high at 161.87. Further upside is seen at 162.00.

Conversely, if EUR/JPY sellers’ step in and prevent a daily close above 160.00, that would exacerbate a leg-down. The first support would be a seven-month-old support trendline at around 159.50 – 159.70, also a confluence with the Senkou Span A at 159.50. Once that area is cleared, expect a drop to 159.00, before diving to the Senkou Span B at 158.47.

EUR/JPY Price Action – Daily Chart

EUR/JPY Technical Levels

EUR/JPY

Overview
Today last price 160.08
Today Daily Change 0.36
Today Daily Change % 0.23
Today daily open 159.72
 
Trends
Daily SMA20 159.46
Daily SMA50 158.83
Daily SMA100 158.92
Daily SMA200 156.51
 
Levels
Previous Daily High 160.84
Previous Daily Low 159.42
Previous Weekly High 161.72
Previous Weekly Low 159.7
Previous Monthly High 161.78
Previous Monthly Low 153.17
Daily Fibonacci 38.2% 159.96
Daily Fibonacci 61.8% 160.3
Daily Pivot Point S1 159.14
Daily Pivot Point S2 158.57
Daily Pivot Point S3 157.73
Daily Pivot Point R1 160.56
Daily Pivot Point R2 161.41
Daily Pivot Point R3 161.98

 

 

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