EUR/JPY is trading around 168.80 and is targeting the upper boundary of its ascending channel near 169.20. The 14-day RSI is just under 70, supporting a bullish trend, while the nine-day EMA at 167.68 serves as primary support.

The pair has recovered recent losses and continues to trade within a bullish ascending channel. A potential upward move may retest the 169.20 level, with a breakthrough leading towards the psychological 170.00.

Short Term Momentum

Short-term momentum is strong with EUR/JPY above its nine-day EMA, while the RSI close to 70 signals an overbought risk. Support at the nine-day EMA is at 167.68, with a break potentially leading to 166.00 and further to the 50-day EMA at 164.57.

The Euro shows varied performance against major currencies, being strongest against the Japanese Yen. The heat map displays percentage changes across different currency pairs, indicating relative currency strength and weakness.

This update on EUR/JPY outlines a pair that’s gained momentum, advancing steadily within a rising channel. The current price sits near 168.80 – pressing upwards toward that upper boundary at around 169.20. The 14-day RSI just below 70 adds a layer of confirmation to the market direction, while also bearing a cautionary tone. It usually tells us that buying interest might be stretched, but there’s still manageable room before it becomes an issue.

Support rests clearly on the nine-day EMA, now at 167.68, and the price continues to tread above it without hesitation. That tells us there’s no visible sign yet of reversal, and momentum sits firmly with buyers. Above 169.20, there’s not much technical resistance until the psychological 170.00 mark, which, if tested, may draw added attention and possibly even stronger volumes. These round numbers tend to invite larger involvement due to their visibility on most trading dashboards and plans.

Recovery and RSI Levels

The recovery from recent losses confirms buyers re-entered at attractive levels. That adds weight to the trend and validates the range we’ve been observing. However, with RSI nearing overbought levels, late entries may encounter poor reward-to-risk setups. In weekly positioning, we should consider booking partial profits closer to 169.20 while keeping remaining exposure flexible against new information. Momentum remains with the bulls, but new highs might start drawing hesitant bids rather than aggressive new demand.

Below current levels, should the nine-day EMA give way, 166.00 remains the next probable zone of structural interest. Beyond that, the 50-day EMA near 164.57 stands as a more intermediate line of defence. It’s rare to see sharp violations of such an average without confirming sentiment shifts, so discipline around these figures helps maintain measured exposure.

Looking at broader currency strength through the heat map, the yen underperforms on most fronts, falling particularly in comparison to the common currency. That gives EUR/JPY its edge but also reminds us to watch other cross flows––especially with such a wide divergence in behaviour. Markets rarely continue with this pace unchecked. When one side of a pair dominates across markets, sharp corrections are not unusual.

In the near term, it makes sense to stay with the trend, but gradually transition from impulse entries to more methodical assessments. All setups should be timed carefully, especially if approached from leveraged or intraday positions. While higher timeframes still look constructive, continuing to reference momentum layers, like RSI and EMAs, will tell us exactly when strength turns into exhaustion, and when support begins to weaken.

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