EUR/JPY has surged to levels not seen since August 2008, taking advantage of a weaker Yen. Technical indicators suggest the potential for further gains after breaking through resistance at 165.30, aiming towards the high of 169.47 from August 2008. However, there are downside risks if EUR/JPY falls below the recent high of 166.22.
The Euro reached a nearly 16-year high against the Japanese Yen, reaching levels last seen in August 2008. The Yen has been lagging behind in the FX market, with data from the US prompting investors to favor the Greenback, pushing USD/JPY to multi-year highs. As a result, EUR/JPY has also risen to 166.67, gaining over 0.20%.
The technical outlook for EUR/JPY is bullish, with the pair consolidating below the 165.30 level since mid-March. Buyers have pushed the pair past 166.00, with potential to challenge the high of 169.47 from August 2008 if they surpass 167.00. However, if sellers bring the exchange rate below 166.22, the pair could slide towards support levels at 165.33 and 164.83/64.
Overall, EUR/JPY is showing strength in its price action on the daily chart, with potential for further gains if buyers maintain momentum.