EUR/JPY Is in a Mild Pullback as It Targets Level 166.59

EUR/JPY Significant Levels
Resistance Levels: 164.00, 166.00 and 168.00
Support Levels: 158.00, 156.00 and 154.00

EUR/JPY Price Long-term Trend: Bullish
The EUR/JPY is in an uptrend as it targets level 166.59. The currency pair is exhibiting a pattern of higher highs and higher lows. The pair is retracing after reaching a high of 165.35. The Yen is likely to continue its upward trend.

On the January 19, 2024, rally, a retraced candle body tested the 61.8% Fibonacci retracement level. The retracement indicates that the EUR/JPY will increase to the 1.618 Fibonacci extension, or level 166.59. The Yen is now trading at 163.65 as of writing.

The present uptrend will restart if the pair retraces and remains above the moving average lines.

Daily Chart Indicators Reading:
The currency pair is in a mild pullback, with the price retracing above the moving average lines. The Yen will rise as the price indication forecasts additional positive movements in the currency pair. The moving average lines are trending upward, indicating a bullish crossover. This means that the currency pair will continue to increase.

EUR/JPY Medium-term Trend: Bullish
On the hourly chart, the Yen is declining but remains above the breakout level of 163.52. The pair will continue to trade above the current support level. If the current support level holds, the Yen will rise. However, if the current support is broken, the pair will fall to level 163.00.

4–Hour Chart Indicators Reading:
The currency price bars have dropped between the moving average lines. This suggests a possible range-bound move for the currency pair. The pair is stabilizing above its current support at level 163.52. The moving average lines are trending higher, indicating an uptrend.

General Outlook for EUR/JPY
The currency pair has sustained a positive trend above the 21-day SMA as it targets level 166.59. The Yen will increase and retest the resistance at 165.35. A break above the resistance will propel the pair above level 166.00. The positive momentum will continue to level 1.618 Fibonacci extension, or 166.59.

In other words, the forex signal will remain positive, and the Yen will trade in the bullish trend zone.

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