EUR/JPY Moves Near 166.50 as Market Stays Positive
The euro is trading close to 166.50 against the Japanese yen in early European trading. This is happening because investors feel a bit more confident about global stock markets right now, so they are less interested in safe-haven currencies like the yen. But worries about tension in the Middle East, especially between Israel and Iran, could still limit how much higher the euro can go.
On the technical side, the euro is holding above its 100-day average, which shows good support. Also, a popular indicator called RSI is near 68, which means the euro has strong buying momentum for now.
Traders are watching important price levels. If EUR/JPY breaks above 166.90–167.00, it might move up toward 170.75, which was a high reached in May. If the pair drops below 164.95, then it could fall further to around 162.90.
People are also paying attention to the Bank of Japan. It is expected to keep its interest rates at 0.5% in its next meeting. If rates stay low, this usually makes the yen weaker and helps the euro stay strong.
Impact: The euro could rise more if global markets stay calm, but any new trouble in the Middle East might pull it down again.