Eurjpy To Find First Resistance

 Eurjpy To Find First Resistance

Eur/Jpy To Find First Resistance Above 169.80

The EUR/JPY is seen trading near 169.50, with eyes set on the next target at 169.80. The upside in the EUR/JPY is driven by a weaker JPY due to the recently released Q1 GDP numbers from Japan.

The recent GDP figures have made it difficult for the BoJ to go ahead with another rate hike. But at the same time, the central bank can't support the JPY without hiking up the rates.

Eur/Jpy Remains Bullish, According To Rsi

For now, the bullish momentum in EUR/JPY remains in effect as the cross is trading comfortably above the 100 EMA on the H4 chart.

Similarly, the path of least resistance for the EUR/JPY is also towards the upside, as even the RSI is printing near 64.50. Up ahead, the EUR/JPY will target the next levels at 169.80 and then 170.00 handle.

If the EUR/JPY successfully crosses these two hurdles, the next stop will be 171.60, which is also the all-time high for the cross. After that, the next stop for the EUR bulls will be the 172.00 handle, which is also uncharted territory.

Another scenario is a break of the 168.78 support from the 17th May low. If the JPY bulls can cross this support, it will open the doors to 167.79, where the Bollinger Band lower limit is located.

After these, the next dynamic support for the EUR/JPY is at 167.50, where the 100 EMA is located. But if the EUR/JPY sellers continue to press lower, a revisit to the 167.33 and 165.66 is also on the cards.

For the time being, the EUR/JPY is completely bullish, as it is even trading above the short and long-term SMAs. The 20 SMA is present at 167.17, while the 200 SMA is located at 160.76.

Similarly, the EUR/JPY cross is also above the mid-term SMA lines, such as the 50 and 100, which are found at 165.04 and then at 162.82. The location of these SMA lines is based on the D1 chart, but the H1 chart also shows that the EUR has the upper hand against the JPY.

Trending Stories