EUR/JPY Price Analysis: Eyes 158.00 as a hammer emerges, suggesting upside expected

• EUR/JPY trades at 157.85, up 0.19%, as it hovers above the Ichimoku Cloud, indicating a neutral to bullish outlook.
• First resistance for buyers lies at the Kijun-Sen level of 158.05; breaching this could target year-to-date high at 159.76.
• Immediate support found at September 11 daily low of 156.58; breaking this could see the pair slide toward 155.58.

The Euro (EUR) advances against the Japanese Yen (JPY) for the second straight day after forming a hammer, which suggests the cross-currency pair could be headed for higher prices. As the North American session winds down, the EUR/JPY is trading at 157.85, gaining 0.19% at the time of writing.

EUR/JPY Price Analysis: Technical outlook

After peaking at around 158.15, the EUR/JPY remains neutral to a downward bias despite trading above the Ichimoku Cloud (Kumo). As the pair continued to print successive series of lower highs and lows, today’s upward correction is being capped by the Kijun-Sen at 158.05, seen as the first resistance for buyers if they would like to retest yearly highs. A breach of the latter would expose 159.00, followed by the year-to-date (YTD) high at 159.76.

Conversely, the EUR/JPY first support would be the September 11 daily low of 156.58, which, once cleared, the pair would dive towards the Senkou Span B at 155.58. In the scenario of sliding below that level, the top of the Kumo will emerge as the next support at 154.70.

EUR/JPY Price Action – Daily chart