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Analysis of the EUR/JPY Price: Stagnates Near 158.50/159.00 Due to the Absence of Market Drivers
The EUR/JPY pair sustained losses for two consecutive days, fluctuating by an average of 43 pips per day. Critical levels of resistance consist of the 159.00 mark and the daily high of 159.91 set on October 24. Adversely, the Tenkan-Sen level at 158.45 and the upper limit of the Kumo at 157.90/80 provide support.
Wednesday marked the end of EUR/JPY's two-day losing streak; the pair's decline was halted by the Tenkan-Sen level at 158.45, which served as support. The asset experienced a reduction in volatility as the cross-pair reached an average daily range (ADR) of 43 pips. As a result, the EUR/JPY may continue to trade sideways at 158.66 at the start of the Asian session.
Despite a modest upward bias, the EUR/JPY pair remains range-bound due to the absence of direction. As a result, the price action is elevated above the Ichimoku Cloud. Thus, the initial obstacle would be the 159.00 level, which would be succeeded by the daily high of 159.91 set on October 24. If the latter is breached, the pair could potentially trade above 160.00.
The initial support for the EUR/JPY, however, would be the Tenkan-Sen at 158.45. The next floor would be the Kumo at 157.90/80, if sellers are successful in surpassing that level, followed by the Kijun-Sen at 157.13. A breach of that price level would result in the Kumo descending to its nadir at 155.60.
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