The EUR/JPY Weakens as It Approaches Level 166.45

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 exchange rate has risen steadily as it approaches level 166.45. The upward momentum has continued even though the price has surpassed its target. The Yen rose to a high of 166.68 in the preceding price action before falling. However, the prior level of 166.68 has not been surpassed since October 31, 2024.

The Yen is expected to reach its highest points at 170.00 and 174.00 if the present barrier is broken. However, the Yen will weaken if it cannot overcome the barrier at 166.68. Today, the currency pair reached a high of 166.45.

Daily Chart Indicators Reading:

The Yen’s value increased sharply as it approached the overbought section of the market. The moving average lines are exhibiting a sideways upward slope. The price bars are above the upward-sloping 21-day SMA and the 50-day SMA, indicating an uptrend. The current trend will reverse when the 21-day SMA drops below the 50-day SMA.

EUR/JPY Medium-term Trend: Bullish

The currency pair is on the rise after rising to a high of 166.50. The upward trend has stopped at the barrier of 166.50. The bullish trend was rebuffed on June 12 at the peak of 166.74. After plunging precipitously below the 21-day SMA support, the Yen bounced back above it. The bullish momentum was again stopped at the last high on June 13. The Yen may be rejected at the peak of 166.68. 

4-Hour Chart Indicators Reading

The 50-day and 21-day SMAs slope northward, indicating an increasing trend. There are candlestick wicks at level 166.50 heading in the opposite directions from the resistance. The most recent high indicates strong selling pressure.

General Outlook for EUR/JPY

The currency pair is rising as it approaches level 166.45. The Yen is slipping below level 166.60 and rising above level 165.20 on the 4-hour chart. It seems improbable that the Yen would rise higher as it approaches the overbought area. The currency pair will have to trade in a range if it declines from the most recent high.

It will fluctuate above the moving average lines but below the 166.60 barrier. The forex signal is positive as it approaches the overbought sector of the market.

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