EUR/JPY is facing challenges in surpassing its recent high of 174.60, as momentum oscillators indicate an overextended market. Currently, the pair is trading just below this level, with the RSI attempting to move below the 70 mark and the MACD showing weakening positive momentum.
In the event of a downward movement, immediate support could be found near the previous peak of 171.55 and the 20-day simple moving average at 170.80. Further decline could bring bearish sentiment into play, potentially leading the price towards the 50-day SMA at 169.70 and the 23.6% Fibonacci retracement level at 169.50.
Conversely, a renewed uptrend would require a retest of the 174.60 level before potentially reaching new highs at 175.00 and 176.00. Overall, EUR/JPY’s recent surge suggests a positive long-term outlook, but a break below the uptrend line and the 200-day SMA at 163.23 could signal a shift to a bearish perspective.