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27.10.2023 06:14 PM
EUR/JPY: reversal below 157.99

The currency pair rebounded in the last hours and now is located at 158.46 level at the time of writing. After the last sell-off, the rate tries to rebound. EUR/JPY could test and retest the immediate resistance level before going down. The Japanese Yen Futures' further growth could boost the JPY.

Fundamentally, the Spanish Flash GDP reported a 0.3% growth versus the 0.2% growth estimated. On the other hand, the Tokyo Core CPI came in better than executed as well.

EUR/JPY Retests The Sellers!

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Technically, the price is trapped between the 158.93 and 157.99 levels. As you can see on the H1 chart, the rate escaped from the major ascending channel, but a downside continuation is far from being confirmed.

USD/JPY has found support on the former low of 157.99 again and now it challenges the broken uptrend line.

EUR/JPY Outlook!

A bearish closure below 157.99 activates more declines. This scenario is seen as a selling opportunity. This scenario could be invalidated if the rate makes a new higher high.

Ralph Shedler,
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