EURJPY Ready for a Descent?

25 Sep 2023

The EUR/JPY continues to depreciate for the tenth consecutive day, with resistance at 158.17 and proximity to the Ichimoku Cloud (Kumo) suggesting potential downside risks. Currently trading at 157.60 (-0.19%), the Euro is weak due to recessive prospects in the Eurozone. The ECB is maintaining steady rates, following the Fed's approach of keeping rates higher for a longer period. This, combined with concerns about possible Japanese intervention in the Forex market that could strengthen the yen, keeps traders on hold. In the daily chart, the EUR/JPY shows a sideways trend with key resistance at 158.17 and potential targets at 158.65 and 159.00. In the hourly chart, lower highs are evident, suggesting a bearish outlook, awaiting a low below 157.03. The first support is at 157.48, followed by 157.11 and 157.03, while resistance is at 157.69, 157.79, and 158.00. The expectation remains bearish. Regards, Nicola, CEO of Forex48 Trading Academy.