EUR/JPY Price Analysis: Retreats from weekly high, as bearish-engulfing pattern surfaces

• EUR/JPY retreats from weekly high on gloomy Eurozone economic data.
• Despite losses, EUR/JPY remains upward biased, but intervention risks may cap gains at around 160.00.
• If EUR/JPY drops below Tenkan-Sen at 158.45, it could aim for the top of the Ichimoku cloud at 157.90/158.00.

EUR/JPY retreats from the weekly high hit on Tuesday at around 159.91 after economic data from the Eurozone (EU) painted a gloomy outlook for the whole economy in the bloc. Hence, as a bearish-engulfing candle pattern emerges, the cross-pair drops 0.64% and trades at 158.81, below the 159.00 figure.

Despite registering solid losses, the EUR/JPY remains upward biased, but risks of intervention would likely cap the pair at around 160.00. If that level is cleared, the cross could aim toward August’s 2008 high at 169.47 but, firstly, would need to crack the 165.00 figure on its way to the former.

Conversely, If EUR/JPY drops below the Tenkan-Sen level at 158.45, the pair could aim toward the top of the Ichimoku cloud at 157.90/158.00. Up next, a drop inside the Kumo, and sellers can drag the spot prices towards the Kijun-Sen at 157.13.

EUR/JPY Price Action – Daily chart

EUR/JPY Technical Levels