The EUR/JPY pair has been on an upward trajectory, with gains of 0.44% extending its winning streak for seven consecutive days. This positive movement is attributed to the upbeat market sentiment prevailing at the moment. The pair is currently trading at 169.27 during the North American session.
From a technical standpoint, the outlook for EUR/JPY remains bullish. The uptrend has been supported by strong momentum, as indicated by the Relative Strength Index (RSI) nearing overbought territory. While there are concerns that intervention by Japanese authorities could limit the upside, the current trend suggests a continued upward movement in the near term.
In terms of key levels to watch, resistance is seen at April’s 26 high of 169.39, followed by the psychological level of 170.00 and the year-to-date high of 171.58. On the other hand, if the pair retreats and falls below 169.00, this could signal a shift in momentum. The initial support level to watch is around 166.93/81, followed by the Tenkan-Sen at 166.68, and the Senkou Span B at 165.90.
In the daily chart, the EUR/JPY price action shows a clear uptrend, with consecutive higher highs and higher lows. The recent gains have pushed the pair towards key resistance levels, suggesting a potential breakout to the upside. Traders are advised to closely monitor price movements around these resistance levels for potential trading opportunities.
Overall, the EUR/JPY pair is currently in a bullish phase, with the technical outlook favoring further upward movement. While there may be some resistance levels to overcome, the positive market sentiment and strong momentum indicators suggest that the pair may continue its winning streak in the near future. Traders should stay updated on key support and resistance levels to make informed trading decisions.
