The EUR/JPY pair has surged towards the 169.00 mark, buoyed by an uptick in risk appetite mirrored in Wall Street’s performance. As of the latest update, the cross-pair trades at 168.89, marking a 1.12% increase.
Technical analysis of EUR/JPY reveals an upward bias on the daily chart, albeit with signs of overextension in the rally. The Relative Strength Index (RSI) currently stands at 76.00, typically considered overbought territory. However, given the strength of the uptrend, the 80.00 level is viewed as the most extreme condition.
Should buyers succeed in reclaiming the 169.00 level, the next significant resistance zone lies at the July 2008 high of 169.97. Clearing these levels could potentially open the path towards 170.00.
Conversely, a daily close below 169.00 might prompt a retracement towards the 168.00 support level. Further downward movement could lead to losses below the Tenkan-Sen at 166.20, followed by the Kijun-Sen at 165.84.
As market participants monitor these technical signals amidst evolving risk sentiments, the EUR/JPY pair remains poised for potential movements in the near term.
