Technical Analysis – EURJPY recovers from mild pullback
EURJPY storms back higher towards 2024 peaks
Momentum indicators weaken but remain positive
EURJPY has been in a steady advance since December 2023, peaking at the 2024 high of 163.70 on February 27. Despite experiencing a pullback in the past week, the pair found its feet and rotated back higher towards its recently registered three-month peak.
Given that both the RSI and MACD are within their positive zones, the price may revisit its 2024 high of 163.70. Should that barricade fail, the spotlight could turn to the 15-year peak of 164.28. A break above that area could propel the price towards fresh multi-year highs, where the October 2007 resistance of 167.72 could curb its upside.
Alternatively, should the pair reverse lower, the bears could challenge the recent support of 161.66, which also acted as resistance in January. Further declines could then come to a halt at the August-October resistance region of 159.75. Even lower, the February support of 158.06 could act as the next line of defence.
In brief, EURJPY is on track to retest its 2024 peak of 163.70 despite the short-term oscillators suggesting weakening positive momentum. Hence, a clear break above that region could bring the multi-year highs registered in 2023 under scrutiny.
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