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• The EUR/JPY currency pair touched a four-day high of 158.26, buoyed by a sharp rally in the EUR/USD pair, before settling at around 158.05.
• Despite breaching the Ichimoku Cloud, immediate resistances at the 158.47 and 158.65 levels capped further upward momentum.
• Potential downside could see the pair target the 156.45 level, with further declines possibly testing the Oct. 3 low of 154.34.

The EUR/JPY currency pair printed solid gains of more than 0.90% on Friday after the EUR/USD pair rallied sharply towards a daily high of 1.0600. This lifted the cross-currency pair towards a four-day high of 158.26 before it reversed towards the 158.05 level.

From a technical perspective, the EUR/JPY pair appears to have consolidated in the daily chart despite breaking above the Ichimoku Cloud (Kumo), which is usually seen as a bullish signal, but immediate resistance would cap the euro’s intentions of reaching higher prices. If the pair aims higher in the coming week, the first resistance would be seen at the Oct. 2 high of 158.47, followed by the Sept. 13 daily high of 158.65.

On the flip side, if the EUR/JPY currency pair drops inside the Kumo, it could dive towards the Senkou Span A at the 156.45 level before challenging the bottom of the Kumo at 156.49. Once those two levels are cleared, the pair could aim towards the Oct. 3 daily/weekly low of 154.34.

EUR/JPY Price Action – Daily Chart

EUR/JPY Technical Levels

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