Experiences setback but remains bullish as hammer looms

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• EUR/JPY faces a slight downturn but manages to stay above the crucial 163.00 level.
• The pair touched a three-day low at 162.15, yet a ‘hammer’ pattern in today’s trading indicates potential buyer intervention around the Tenkan-Sen level of 162.37.
• A move below 163.00 might lead to a further decline towards the day’s low of 162.15, potentially extending to the 162.00 level

EUR/JPY registers back-to-back days of losses, down 0.22% in late trading during Friday’s North American session, set to remain above the 163.00 figure after reaching a three-day low of 162.15.

Even though the EUR/JPY sees red, today’s price action forming a hammer suggests that buyers stepped in at around the Tenkan-Sen at 162.37. After that, the cross-pair climbed more than 80 pips, opening the door for further upside.

If EUR/JPY climbs above the 164.00 figure, that could open the door to challenge the year-to-date (YTD) high of 164.31, ahead of the 165.00 mark. On the other hand, if sellers step in and pull prices below the 163.00 figure, a dive toward the day’s low of 162.15, is on the cards. Up next, the pair could drop to 162.00, followed by the Senkou Span A at 161.51, ahead of sliding toward the Kijun-Sen at 160.65.

EUR/JPY Price Analysis – Daily Chart

EUR/JPY Technical Levels