EUR/JPY Price Analysis: Remains bearish, despite bulls reclaiming 156.00

• EUR/JPY advances more than 0.50%, courtesy of risk-on impulse.
• Buyers clinging to 156.00 would open the door for a test of the 157.00 figure.
• If sellers drag prices below 156.00, that could drag the spot price below 154.00.

The EUR/JPY gains traction on Monday as traders brace for Tuesday's Bank of Japan (BoJ) monetary policy decision during the Asian session. From the technical standpoint, the pair found support at around the 155.50 area, and it trades at 156.02, gaining 0.77%, after bouncing from a daily low seen at 154.74.

The daily chart portrays the pair as downward biased, as the pair slipped below the Ichimoku Cloud (Kumo). Further signals that bears are in charge are the crossing of the Tenkan-Sen below the Kijun Sen, and the Chikou Span sitting below the price action. If the EUR/JPY achieves a daily close below 156.00, that can pave the way for further losses, with the first support seen at 153.85, the December 14 daily low, followed by the December 7 swing low of 153.11.

In the outcome of the EUR/JPY achieving a daily close above 156.00, it would exacerbate a rally toward the Tenkan-Sen at 156.11, followed by the December 15 high at 156.49. Once cleared, the next supply zone would be the 157.00 figure.

EUR/JPY Price Analysis – Daily Chart

EUR/JPY Technical Levels