Eurjpy Trades Near 16 Year High

 Eurjpy Trades Near 16 Year High

Eur/Jpy Trades Near 16-Year High, Target Of 167.00 In Sight

Lately, the price action seen in the EUR/JPY is in a league of its own as the pair sits near the 16-year high. If we look at it from another angle, the Japanese Yen is at one of its lowest points against the Euro in more than a decade.

If we look back, the last time EUR/JPY was trading near these levels was in August 2008. Recently, several data releases from the USA were bullish for the greenback, which allowed the USD/JPY to gain ground. As a result, even the EUR/JPY followed the tracks of USD/JPY and is now trading near 166.67.

Eur/Jpy Eyes 167.00 As Next Target

Overall, the EUR/JPY gained 0.20% during the trading session, which means the short-term & even long-term bias is now bullish.

If we look at the technical outlook of EUR/JPY, it appears to be in a bullish bias. It all started when the pair was showing consolidation signs near the 165.30 - 165.40 area. However, a break of 166.00 allowed the EUR/JPY to attract a lot more buyers, which sent it towards the 167.00 handle.

Despite all the positive momentum, a let retreat was seen in EUR/JPY, which means the buyers are catching their breath. After all, the momentum remains in favor of the EUR/JPY as even the RSI is near the 68.80 level.

So even if we analyze the EUR/JPY in terms of RSI, it is still a long way from the overbought area, which means more upside is still possible.

If the EUR/JPY bulls clear the 167.00 hurdles successfully, it will open the doors towards 169.47, which is the high from August 2008. After that, the most relevant resistance is the 170.00, which is also an important psychological level.

On the way down, selling pressure means a revisit to 166.22, strong support for the EUR/JPY. According to experts, failure to hold off the JPY buyers at this level will open the doors to the next support at 165.33.

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