EUR/JPY is currently trading around 168.80 and is aiming for the upper boundary of its rising channel, near 169.20. The 14-day RSI is just below 70, indicating a bullish trend. The primary support is the nine-day EMA, which is at 167.68. The pair has bounced back from previous losses and remains within a bullish ascending channel. A potential upward movement could retest the 169.20 level. If it breaks through, it may head towards the psychological barrier of 170.00.

Short Term Momentum

Short-term momentum is strong, with EUR/JPY above its nine-day EMA. The RSI, close to 70, suggests an overbought risk. Support at the nine-day EMA is at 167.68. If it breaks below, we could see a drop to 166.00, with further support at the 50-day EMA, currently around 164.57. The Euro’s performance varies against major currencies, but it is strongest against the Japanese Yen. The heat map shows percentage changes across various currency pairs, highlighting their respective strengths and weaknesses. This update on EUR/JPY reveals a pair gaining momentum and moving steadily within a rising channel. The current price is near 168.80 and pushing towards the upper boundary around 169.20. The 14-day RSI, just under 70, confirms the market direction while also signaling caution. This suggests that buying interest may be stretched but still has some room before it becomes a concern. Clear support lies at the nine-day EMA, which is at 167.68. The price remains above this level, showing no signs of reversal. Buyers hold strong momentum. Above 169.20, there isn’t much technical resistance until we reach the psychological level of 170.00, which could attract more attention and stronger trading volumes. Such round numbers tend to draw larger participants due to their visibility in trading dashboards.

Recovery and RSI Levels

The recovery from recent losses shows that buyers have returned at favorable levels, strengthening the trend and confirming our observed range. However, with the RSI nearing overbought territory, late entries might face poor reward-to-risk ratios. When considering weekly positions, it’s wise to take partial profits closer to 169.20 while keeping some flexibility for new developments. Momentum is on the side of buyers, but new highs may attract hesitant bids rather than aggressive demand. If the nine-day EMA fails to hold, the next area of interest could be 166.00. Further down, the 50-day EMA near 164.57 serves as a significant line of defense. Sharp movements away from these averages are rare without confirming changes in sentiment, so being disciplined around these levels is crucial. Looking at the overall currency strength through the heat map, the yen underperforms against most currencies, especially the Euro. This gives EUR/JPY its advantage, but it also reminds us to monitor other currency flows, especially given the wide divergence in behavior. Markets seldom maintain a steady pace; when one side of a pair dominates, sharp corrections are common. In the short term, it’s sensible to stay with the trend but gradually shift from quick entries to more thoughtful evaluations. Timing for all setups should be precise, especially for leveraged or intraday trades. Although higher timeframes appear favorable, continuing to monitor key indicators like RSI and EMAs will help us know when momentum shifts from strength to exhaustion, and when support begins to weaken. Create your live VT Markets account and start trading now.

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