The EUR/JPY has been trading in a range between 168 and 170 for almost a month, but buying pressure has started to fade. Sellers are gaining momentum, with potential targets at 167.47 and 165.92. Although the upside is limited, a breach of 170.00 could lead to a test of the year-to-date high of 171.58.
On Thursday, the EUR/JPY saw fluctuations within a 180-pip range and is currently down 0.45% from a daily high of 170.13 to 168.60. The technical outlook shows that the pair is struggling to move below the Ichimoku Cloud, which could signal a downtrend acceleration.
The Relative Strength Index (RSI) indicates that sellers are gaining strength as the RSI drops below the 50-line. If the EUR/JPY falls below the 50-day moving average of 167.47, we could see a further decline towards the bottom of the Kumo at 165.92 and the 100-day moving average at 164.78.
Overall, the EUR/JPY price action on the daily chart suggests a bearish trend, with potential support levels at 167.47 and 165.92. A breach of 170.00 could shift the momentum towards testing the year-to-date high of 171.58.