EUR/JPY Price Analysis: Bearish Reversal Stalled At 156.10 Support

By Guillermo Alcala of FXStreet.com

Where Forex Never Rests • Dec 31, 2023 at 9:20 AM EST

The euro was looking for direction during a light session on the last trading day of the year. The EUR/JPY currency pair´s reversal from the 158.45 level was contained at the 156.10 support area, with the 157.00 mark capping bulls.

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The euro's attempts to the downside appeared to have been capped above the 156.00 mark.
The currency pair was seen consolidating on Friday after the late November decline.
Euro bulls may face strong resistance at the 158.45 level.

The euro was looking for direction during a light session on the last trading day of the year. The EUR/JPY currency pair´s reversal from the 158.45 level was contained at the 156.10 support area, with the 157.00 mark capping bulls.

Looking from a broader perspective, the pair appeared to be in a consolidation pattern, following a bearish impulse from November highs above the 164.00 level.

Technical indicators were mixed, with the RSI flat near the 50 level, which may suggest a lack of clear direction. As previously mentioned, the 157.00 level appeared to be closing the path towards key resistance at 158.45, the 50% retracement of the late November sell-off.

On the downside, immediate support was seen at the 156.10 mark, below the 155.35 level, and at the Dec. 14 low of 154.00.

EUR/JPY Four-Hour Chart

EUR/JPY Chart

(Click on image to enlarge)

EUR/JPY Technical Levels to Watch

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