EUR/JPY outlook: Hits new record high, intervention looms

Slobodan Drvenica Windsor Brokers

EUR/JPY

EURJPY continues to trend higher and hit new record highs with Yen being additionally pressured by dovish comments from Japanese PM, who administration’s expressed preference to keep interest rates low.

On the other hand, comments from Finance Minister on persistent weakening of yen, gives verbal warning about potential intervention by Japanese authorities, to boost the national currency.

The pair entered uncharted territory and came ticks ahead of psychological 180 barrier, where bulls are expected to face headwinds as daily studies are overbought and momentum indicator diverges from the price action.

Technical picture remains firmly bullish on daily chart, with limited dips to be ideally contained at 178.00 zone (above rising daily Tenkan-sen) to keep larger bulls intact for fresh push higher, however, the price may fall sharply if authorities decide to intervene.

Res: 180.00; 180.37; 180.75; 181.00.
Sup: 179.22; 178.80; 177.75; 177.30.

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

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