Ella 
Entering the European session on Friday, EUR/JPY remained at a low level near the intraday bottom of 158.20. The cross took cues from a recent pullback in government bond yields and upbeat inflation data from Japan amid today’s market downturn.
However, the price clearly reversed from the uptrend line three weeks ago, coupled with the bearish MACD signal and the break below the 50 SMA, sparked focus to keep the bears hopeful.
It is worth pointing out that the former resistance line since the end of June around 157.60 limits the short-term downside of EUR/JPY.
After that, the 200 SMA at 156.55 will act as the last line of defense for EUR/JPY bulls.
A break below multiple support levels around 156.55, 155.55 and 153.40 could challenge the bears, before guiding them to the previous monthly low around 151.40.
On the contrary, the exchange rate must rise significantly above the 50 SMA at 158.45 to bring the bulls back.
Even so, an uptrend line from July 21 near 159.55, plus a round figure of 160, will challenge EUR/JPY bulls.
