EUR/JPY Price Analysis: Struggles below 158.00, eyeing further downside

EUR/JPY registered slim losses, capped by broad Japanese Yen weakness.
Downside risks emerge at the daily chart if EUR/JPY drops below 156.70 inside the Ichimoku Cloud.
Short term, the EUR/JPY is downward biased, as it trades below key resistance levels; sellers eye 156.00.

EUR/JPY failed to gain traction past the 158.00 figure, instead retreated towards the 157.50s area, and recorded losses of 0.07% on Tuesday. As Wednesday’s Asian session begins, the cross-pair is trading at 157.57, almost unchanged.

From a daily chart perspective, the EUR/JPY is set to extend its losses but has failed to do so on overall Japanese Yen (JPY) weakness. Nevertheless, once the pair drops inside the Ichimoku Cloud (Kumo) at around 156.70, that would exacerbate the pair’s drop. Subsequent support would emerge at the Senkou Span B at 155.58, before slumping toward the July 28 low of 151.40.

The EUR/JPY hourly chart shows the pair is trading below key resistance levels, with the Tenkan-Sen at 157.55 and the bottom of the Kumo at around 157.60. If those areas are cleared, the next stop would be the September 26 daily high at 157.92. However, the path of least resistance is to the downside.

That said, the EUR/JPY first support would be the September 26 low at 157.31, followed by the 157.00 figure. The pair’s next floor level would be the September 15 daily low at 156.72, followed by the September 14 swing low at 156.63.