EUR/JPY continues its upward trajectory toward the 169.00 mark, driven by improved risk sentiment. Currently trading at 168.89, the cross-pair demonstrates a significant daily gain.
Technical Analysis: Bullish Momentum with Overbought Signals
- Upward Bias: The daily chart illustrates a robust bullish trend, though the rally appears overextended.
- RSI Warning: The Relative Strength Index (RSI) at 76.00 indicates potential overbought conditions. However, strong uptrends can persist even beyond the 80.00 threshold.
- Key Resistance: A decisive break above 169.00 could trigger a further surge towards the July 2008 high (169.97) and ultimately the 170.00 psychological barrier.
- Potential Retracement: A daily close below 169.00 might signal a correction, with initial support at 168.00, followed by the Tenkan-Sen (166.20) and Kijun-Sen (165.84).
Outlook:
While the bullish momentum remains strong, overbought conditions suggest the potential for a near-term pullback. Traders should be mindful of possible retracement levels if the 169.00 resistance is not decisively broken.
