EUR/JPY Price Forecast: Hits New All-Time High Above 176.00
The EUR/JPY pair climbed to a new record high of 176.24 on Monday, breaking past previous resistance levels. The strong rise began with a gap-up opening and continued momentum during Asian trading hours, showing that buyers are still in control.
Technical indicators suggest a bullish outlook. The 14-day Relative Strength Index (RSI) is approaching the 70 level, which shows strong buying pressure. However, if RSI moves above 70, it could signal that the pair is overbought, and a short-term pullback might occur. The price is also trading above the nine-day Exponential Moving Average (EMA), confirming a positive trend in the short term.
On the upside, the next resistance level is expected around 177.00, which could act as a psychological barrier for traders. On the downside, if the price starts to correct, the first support is near the nine-day EMA around 174.02. A further decline might push the pair toward 173.00 or even the 50-day EMA at 172.64. Breaking below that could weaken momentum, leading to a possible move toward 169.72, which was last seen in late July.
Impact:
EUR/JPY might continue its bullish run toward 177.00, but a short-term correction could occur soon. Traders could see sideways movement before the next major trend direction