EUR/JPY Price Analysis: Bearish harami pattern looms below 158.00

• EUR/JPY trades down 0.16%, maintaining its downward bias.
• The bearish sentiment persists as price action drops below Ichimoku Cloud, and the Tenkan-Sen crosses below the Kijun-Sen.
• A less probable bullish scenario requires EUR/JPY to rally past a five-month-old resistance trendline at around 157.35/45.

The EUR/JPY is set to finish Tuesday’s session on a lower note, cementing its bearish bias ahead of major central banks' monetary policy decisions, including the European Central Bank (ECB). At the time of writing, the pair is trading at 157.04, down 0.16%.

The daily chart portrays the pair as downward biased due to price action falling below the Ichimoku Cloud and crossing the Tenkan-Sen below the Kijun-Sen. For a bearish resumption to continue, bears need to step and push prices below the December 11 daily low of 155.86. Once cleared, the next support would be the December 8 low of 153.86, ahead of the December 7 swing low of 153.11

On the flip side, and the least probable scenario if EUR/JPY rallies past a five-month-old resistance trendline at around 157.35/45, the first resistance would be the Tenkan-Sen at 157.44. Once cleared, the next stop would be the Senkou Span A at 158.07, followed by the Kijun-Sen at 158.71.

EUR/JPY Price Analysis – Daily Chart

EUR/JPY Technical outlook