- The Euro is trading lower against a stronger Yen.
- The Yen is the biggest beneficiary of the fall in US Treasury yields.
- EUR/JPY is in the 158.45 resistance zone.
The Euro extends its losses on Thursday, after the second consecutive rejection at the 158.45 resistance zone in the last two weeks.
The common currency has succumbed to the strength of the Yen helped by the narrowing of the yield differential between the US and Japanese Treasury, with investors focused on Fed cuts in 2024.
Technical indicators are pointing lower, with quotes crossing below the 50 and 100 4-hour SMAs and the RSI below the 50 level. In this context, a retest of the December 21 lows at 156.15 seems likely.
Below 156.15, the next targets would be 155.35 and 153.90, which close the path towards the four-month low at 153.14.
To the upside, the pair faces strong resistance at 158.45, which is the 50% Fibonacci retracement of the late November sell-off. The bulls would need to break this level to confirm the uptrend and extend to 159.00 before the 61.8% retracement of the aforementioned trend, at 159.65.
EUR/JPY 4-hour chart
EUR/JPY Technical Levels
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
