EUR/JPY Holds Above 169.00 Amid Bullish Momentum; Eyes Return to 12-Month Peak

Key Takeaways:

• EUR/JPY consolidates near 169.40 after pulling back from yearly highs.
• Momentum indicators still favor bulls, but caution near overbought levels.
• Support lies at 168.77 and 167.00, while upside targets remain near 169.86 and 171.40.

The EUR/JPY pair is trading just above 169.00 in Tuesday’s Asian session, retreating modestly after reaching its highest level in 12 months at 169.86 on Monday. Despite the minor dip, the overall technical structure remains bullish, supported by the pair’s position within an ascending channel on the daily chart.

The 14-day Relative Strength Index (RSI) hovers just below the overbought threshold of 70, suggesting bullish momentum is intact but nearing a level where a short-term correction could emerge. Price action also remains comfortably above the 9-day Exponential Moving Average (EMA) at 168.77, reinforcing short-term upward strength.

What to Watch:

🔼 Resistance and Upside Targets:
A break back above the recent high at 169.86 would likely spark further bullish interest, potentially driving EUR/JPY toward the top of the ascending channel near 171.40.

🔽 Support Levels:
Immediate support rests at the 9-day EMA (168.77). If sellers push below this level, the pair may test the channel base around 167.00, followed by stronger support at the 50-day EMA near 165.32. A drop below this medium-term average would weaken the broader bullish outlook and could trigger a move toward the previous resistance zone around 161.00.

Outlook:

As long as EUR/JPY holds above the 9-day EMA and stays within the rising channel, bulls remain in control. However, with RSI nearing overbought levels, traders should watch for potential profit-taking or a short-term consolidation before the next breakout attempt.

Stay Updated with Daily Forex Pakistan.