EUR/JPY Forecast: Euro Rises Again, Targets Yearly High Above 173.00
The EUR/JPY pair has started moving upward again and is now aiming to break above the 173.00 mark. After a short pause in its bullish run, the euro is gaining strength, while the Japanese yen remains under pressure. This move is supported by continued weakness in the yen, as Japan’s central bank is not expected to raise interest rates anytime soon. Also, weak trade data from Japan is keeping the yen low.
In terms of technical analysis, the EUR/JPY pair is trading above important levels, such as the 100-day EMA, showing a strong bullish trend. However, some momentum indicators like the RSI are moving into overbought territory, which means the price action could slow down or face some resistance soon.
If the bullish momentum continues, the next target for EUR/JPY could be 173.50, and possibly even 174.50 in the coming sessions. But if the pair pulls back, key support levels are seen near 170.95 and then 170.00.
This Forex market outlook suggests that the euro remains strong against the yen, and traders are closely watching for a possible breakout to new highs.
Impact:
EUR/JPY might continue to rise due to yen weakness, possibly reaching new highs. But overbought signals could lead to a short pause or small correction in the near term.