The EURJPY has bounced back from the long-term ascending trend line near 167.70, pushing the market above the previous peak of 170.80. If the pair can break above the 40-year high of 171.56, it could potentially rise towards levels like 172.00 and 173.00.
Technical indicators show the RSI leveling out above 50 and the MACD continuing its positive momentum above its trigger and zero lines.
In a downside scenario, a drop below the 170.80 support and especially below the 20-day simple moving average at 169.70 could lead to a move towards the 50-day SMA at 168.50. Breaking below this level may shift the focus downwards towards 167.30, turning the outlook neutral.
Overall, the EURJPY has been on a bullish trend since December 2023. Short-term weakness may persist until a rally above the multi-year high of 171.56 occurs.