• EUR/JPY buying pressure fades after consolidating around 168-170 for almost one month.
• Momentum supports sellers, with potential targets seen at 167.47 and 165.92.
• Upside is limited, yet a breach of 170.00, could pave the way to test the year-to-date (YTD) high of 171.58.

The EUR/JPY seesawed within a 180-pip range on Thursday yet is posting losses of 0.45% after hitting a daily high of 170.13. At the time of writing, the pair exchanged hands at 168.60, below its opening price.

EUR/JPY Price Analysis: Technical outlook

After peaking at around 170.00, the EUR/JPY has consolidated below the latter, yet it cannot drop below the Ichimoku Cloud (Kumo), which would accelerate the downtrend.

The Relative Strength Index (RSI) shows sellers gather momentum after the RSI punches below the 50-line. This suggests the EUR/JPY would be subject to further losses.

If EUR/JPY falls below the 50-day moving average (DMA) of 167.47, that could exacerbate a dip inside the Kumo, an indication of the acceleration of the downtrend. The next support would be the bottom of the Kumo at 165.92, followed by the 100-DMA at 164.78.

EUR/JPY Price Action – Daily Chart