EUR/JPY Price Analysis: Hits a 15-year high, momentum remains constructive
- EUR/JPY reaches a new 15-year high, trading steadily at 164.06, with a weekly gain of over 2% and eyes set on July 2008's high of 169.97.
- The pair exhibits a strong bullish pattern on the weekly chart, indicating sustained buyer control and the potential to breach the 165.00 resistance.
- A failure to maintain above 164.00 could trigger a pullback towards 163.08, with further support at the Tenkan-Sen line at 162.16.
The EUR/JPY rallied to a new 15-year high on Wednesday, extending its gains for four consecutive days. Weekly, the pair is up more than 2% and at the time of writing, exchanges hands at 164.06, unchanged as Thursday’s Asian session begins.
From a monthly perspective, the EUR/JPY is set to test July’s 2008 high of 169.97, ahead of challenging the 170.00 psychological level. However, on its way north, the cross-pair would challenge July’s 2008 low of 165.31, which, once cleared, the pair has a free ride toward the 169.90 area.
Zooming into a weekly chart, the EUR/JPY prints a three-white soldiers chart pattern, which suggests buyers are in charge as momentum builds to the upside. A breach of the 165.00 mark could pave the way to test 165.59, followed by the abovementioned July 2008 high of 169.97.
Given the backdrop, the EUR/JPY confirms the uptrend, though buyers must cling to gains above 164.00, if they would like to remain hopeful for higher prices. Failure to do so, a pullback toward 163.08, the November 15 low, is on the cards. Further downside is expected at the Tenkan-Sen at 162.16.
Conversely, if EUR/JPY buyers reclaim 165.00, the path would be clear to test higher prices, on the way to challenge the 2008 high at 169.97.
EUR/JPY Price Analysis – Daily Chart
EUR/JPY Technical Levels
Author
Christian Borjon Valencia
FXStreet
Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.
