EUR/JPY Stays Strong Above 166.00
The EUR/JPY pair is holding steady near 166.35, even though there was some profit-taking in early European trading. It still shows strong bullish signs as long as it stays above the 100-day moving average.
The pair is above its 100-day Exponential Moving Average (EMA), which is a positive signal for buyers. Also, the Relative Strength Index (RSI) is at 62, showing strong upward momentum.
Key levels to watch:
The nearest resistance is at 167.62. If the price breaks above this level, it could rise to 167.85 and maybe even test the 170.00 mark, which is a psychological level.
On the downside, support is between 166.05 and 166.00. If the price falls below this, it could go down to 164.22 and possibly to 162.88, which is where the 100-day EMA lies.
What else is affecting the pair:
The Japanese yen is getting some support as a safe-haven asset due to tensions in the Middle East. Also, traders are waiting for Japan’s May inflation data and the Bank of Japan meeting minutes, which are expected on Friday.
Impact:
If EUR/JPY holds above 167.62, it might move higher. But if it drops below 166.00, a deeper correction toward 164.20 could be possible.