In a late North American session on Friday, the EUR/JPY exhibited an upward trend, surging past the 160.00 mark driven by a risk-on sentiment amid solid gains in US equities. Currently, the cross-pair is trading at 160.07.
The recent market activity saw the EUR/JPY temporarily dipping inside the Ichimoku Cloud (Kumo), reaching a weekly low of 158.08. However, resilient buyers swiftly reclaimed ground, surpassing key resistance levels. The Tenkan-Sen at 159.83 was successfully cleared, paving the way for the cross-pair to breach the significant 160.00 mark. A daily close above this level could potentially set the stage for a challenge to the next cycle high at 161.81, recorded on January 19, with additional upside potential extending to 162.00.
Conversely, a failure to sustain levels above 160.00 might prompt sellers to push prices back into the Kumo. Initial support is anticipated at the Tenkan-Sen, followed by the 159.00 figure. Further downside pressure could lead to a challenge of the Kijun-Sen at 158.47. Traders are closely monitoring these levels for potential shifts in market dynamics.
