EUR/JPY Price Analysis: Remains subdued at around 158.20s, near weekly lows

• EUR/JPY trades almost flat at 158.31 as Thursday’s Asian session begins.
• Risk-off sentiment and rumors of possible intervention by Japanese authorities keep the pair in check.
• Technical indicators suggest the pair is in a consolidation phase, with a neutral to a bearish bias.

The Euro (EUR) registers modest losses versus the Japanese Yen (JPY) as Thursday’s Asian session begins. On Wednesday, the pair finished unchanged, on a risk-off impulse and rumors of a possible intervention by Japanese authorities. The EUR/JPY is trading at 158.31, almost flat.

EUR/JPY Price Analysis: Technical outlook

The EUR/JPY daily chart depicts the pair as neutral-biased but tilted to the downside as the cross remains trading near last week’s low of 157.05. It should be said that the Kijun-Sen caps the EUR/JPY fall at 157.65, which would open the door to test the August 23 swing low of 156.87 once cleared. A breach of the latter would resume the cross-currency pair downtrend and test the top of the Ichimoku Cloud (Kumo) at 154.70.

Short-term, the EUR/JPY is bullish biased with the cross exchanging hands above the Kumo, but so far, it has failed to register higher highs, suggesting the pair is consolidating. A break above 158.50 could exacerbate a rally towards the R1 daily pivot at 158.62, followed by the 159.00 figure. Conversely, downside risks emerge at the Tenkan and Kijun-Sen lines at 158.21 and 158.11 each. Once those levels are cleared, the 158.00 figure is up next.

EUR/JPY Price Action - Hourly chart