EUR/JPY Price Analysis: Pull back from two-week highs, return below 163.00

• EUR/JPY buying momentum moderates after bulls struggle to break above the 164.00 level.
• Key support lies at the Tenkan-Sen, and sellers are targeting a drop to 162.00 below the latter.
• If buyers reclaim 163.00, EUR/JPY could remain sideways, before rising to 164.00.

The recovery of EUR/JPY showed some weakness on Monday, with the pair at two-week highs at 163.72, but buying pressure moderates as the cross retreats below 163.00 towards the 162.00 area. At the time of writing, the EUR/JPY pair is trading at 162.73, down 0.40%.

The EUR/JPY pair is testing the Tenkan-Sen support level at 162.77, after reaching a two-week high at 163.72, suggesting that the pair started the week on a negative note. If Yen buyers drag the pair below the Tenkan-Sen, the bears will gain momentum and drive exchange rates towards 162.00. Below that level, the November 21 low stands at 161.24, followed by the Kijun-Sen at 161.88.

For a bullish resumption, EUR/JPY buyers must reclaim the 163.00 level, which could put a test of 163.72 in play, followed by 164.00. A breakout of the latter would expose the EUR/JPY pair to a loss of ground. A break of the latter would expose the November 16 high at 164.31 before rising to 165.00.

EUR/JPY Price Analysis – Daily Chart

EUR/JPY technical levels