- EUR/JPY’s progress is tempered by proximity to this year’s high of 160.84, with a break above this level potentially signaling further gains.
- The threat of Japanese intervention receded, making room for the pair’s upward trajectory.
- Key support levels to watch include the Tenkan-Sen at 159.26 and a stronger support confluence around 157.59/69.
EUR/JPY extends its gains for two straight days and remains above 160.00 ahead of the weekend, amid a positive development market sentiment. Economic data shows that hiring is slowing as US Nonfarm Payrolls for October missed forecasts, fueling risk-on sentiment in financial markets. At the time of writing, the cross pair traded hands at 160.25, gains of 0.29%.
While the pair is trading near cyclical highs, it remains shy of breaking the one-year (YTD) high of 160.84, which could open the door for further upside once it clears. In that case, a pullback could vindicate long traders as Japanese intervention threats have calmed down. A breach of the latter would reveal the 161.00 handle.
Conversely, if EUR/JPY breaks below the Tenkan-Sen at 159.26, the trend would be skewed to the downside. Further support would appear at the confluence of the October 30 low and the Tenkan-Sen around 157.59/69, followed by the day of the Ichimoku cloud at 155.55.