• EUR/JPY touches a new YTD peak but retracts swiftly as intervention fears loom with JPY’s softening stance.
• Consecutive ‘doji’ candlestick patterns signal uncertainty and potential price tug-of-war between buyers and sellers.
• Break above the recent high may challenge the 160.00 threshold, while a descent risks testing the Tenkan-Sen and Senkou-Span A lines in succession.

The EUR/JPY rallied to a new year-to-date (YTD) high of 159.33 but failed to hold above the 159.00 figure as sellers gained momentum due to fears that Japanese authorities might intervene in the Forex market as the Japanese Yen (JPY) weakens. The EUR/JPY is trading at 158.74, printing minuscule gains of 0.02% as the New York session winds down.

EUR/JPY Price Analysis: Technical outlook

The EUR/JPY cross-currency pair sits at around the 158.50/159.00 range for the second straight day in the week, failing to break above the 160.00 figure amidst a soft JPY. Technically speaking, in those days, back-to-back ‘doji’ suggests indecision lying ahead.

If EUR/JPY buyers lift the pair past the current YTD high, the next resistance would emerge at the 160.00 handle. Once cleared, the next resistance emerges at the August 2008 monthly high of 169.47.

Conversely, if EUR/JPY extends its losses below the current week’s low of 158.18, first support would emerge at the psychological 158.00 mark. If sellers push prices below that level, the Tenkan-Sen line surfaces as support at 157.43, followed by the Senkou-Span A line at 156.40 ahead of 156.00.

EUR/JPY Price Action – Daily chart