EUR/JPY Price Analysis: Retreats from two-week high, back below 162.00

• EUR/JPY buying momentum wanes after bulls struggle to crack the 164.00 figure.

• Key support is seen at the Tenkan-Sen, with sellers eyeing a drop to 162.00 below the latter.

• If buyers reclaim 163.00, the EUR/JPY could remain sideways, ahead of climbing to 164.00.

EUR/JPY rally showed some weakness on Monday, with the pair witnessing a two-week high of 163.72, but buying pressure fades as the cross retreats below the 163.00 figure toward the 162.00 handle. At the time of writing, the EUR/JPY pair exchanges hands at 162.73, down by 0.40%.

The EUR/JPY is testing the Tenkan-Sen support level at 162.77 after reaching a two-week high of 163.72, suggesting the pair began the week with a negative tone. If JPY buyers drag the pair below the Tenkan-Sen, bears will gather momentum, driving the exchange rates toward the 162.00 figure. Further downside risks emerge below that level, with the November 21 swing low at 161.24, followed by the Kijun-Sen at 161.88.

For a bullish resumption, EUR/JPY buyers must reclaim the 163.00 figure, which could put into play a test of 163.72, followed by the 164.00 mark. A breach of the latter would expose the November 16 high at 164.31 before climbing to 165.00.

EUR/JPY Price Analysis – Daily Chart