EUR/JPY wavers at fresh highs
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EUR/JPY unlocks new highs as investors reassess rate hike bets.
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Technical signals remain positive but warrant some caution; eyes on 177.00.
EUR/JPY edged up to a fresh 35-year high of 176.33 early on Monday after one of Takaishi's closest economic advisors stated that October is too early for a rate hike, favoring December instead.
However, price momentum was limited, with gains capped below the 161.8% Fibonacci extension of the latest pullback at 176.40, indicating that bearish forces remain present. Still, technical indicators suggest the pair may retain some upside potential, as both the stochastic oscillator and RSI have yet to peak in the overbought zone.
A clear break above the 177.00 psychological level could open the door for a test of the upper boundary of the 2025 bullish channel, currently seen around 179.50–180.00.
On the downside, if sellers push the price back below 175.00, bearish pressures could intensify towards the 172.90–173.45 area, where the 50-day simple moving average (SMA) and the channel’s lower boundary converge. A drop below that zone could trigger a deeper decline towards the 171.00 support region.
Overall, while EUR/JPY still appears to have some bullish momentum, it must decisively clear the 177.00 barrier to sustain Monday’s positive gap and confirm the continuation of the uptrend.
Author
Christina joined the XM investment research department in May 2017. She holds a master degree in Economics and Business from the Erasmus University Rotterdam with a specialization in International economics.
