The EUR/JPY pair is nearing the important 169.00 mark, driven by a strong appetite for risk and gains in the market. Technical analysis indicates a strong uptrend, although the RSI of 76.00 suggests that conditions are overbought.
If the pair manages to surpass 169.00, it will encounter resistance at the July 2008 high of 169.97, followed closely by the key level of 170.00. Conversely, a drop below 169.00 could lead to a pullback to 168.00, with potential support levels at the Tenkan-Sen at 166.20 and the Kijun-Sen at 165.84.
Currently, the EUR/JPY is trading at 168.89, up by 1.12%, as it approaches the 169.00 figure amidst improving risk appetite, particularly in Wall Street.
The daily chart shows that the EUR/JPY is biased towards an upward trend, despite being overextended. The RSI at 76.00 is considered overbought, but in this case, the extreme condition is seen at the 80.00 level due to the strength of the uptrend.
In the event that buyers break above 169.00, the next resistance levels to watch out for are the July 2008 high of 169.97 and the key level of 170.00. Conversely, a daily close below 169.00 could lead to a retracement towards 168.00, with potential further losses below the Tenkan-Sen at 166.20 and the Kijun-Sen at 165.84.
Overall, the EUR/JPY pair continues to show strength in its price action, with potential for further gains if key resistance levels are breached.