- EUR/JPY hits its year-to-date high, boosted by positive sentiment and dovish comments from the Bank of Japan.
- Above 161.00, eye on resistance at 162.00; below the swing low of 160.27 may test the support of 160.00.
- Technical analysis points to a pullback, with critical supports at 160.00, today's low at 160.77 and the pivot at 160.46
EUR/JPY breaks through the 161.00 zone and hits a two-week high of 161.26, thanks to a boost in risk appetite and “dovish” comments from a Bank of Japan member. At the time of writing these lines, the pair is moving around 161.00, with a minimum advance of 0.05%.
On the daily chart, the EUR/JPY pair is showing a bullish bias. However, Friday's price action is shaping a doji, indicating that neither buyers nor sellers are committed to their positionings. That said, if buyers reclaim 161.00, a bullish move towards 162.00 is expected. On the other hand, if sellers step in and break through the February 5 swing low at 160.27, this could pave the way to challenge 160.00.
EUR/JPY Price Action – Daily Chart
In the short term, the divergence between EUR/JPY price action and Relative Strength Index (RSI) studies could open the door for a pullback. First support is seen at 160.00 the confluence of the Tenkan and Kijun-Sen, followed by today's low at 160.77, followed by the daily pivot at 160.46.
EUR/JPY Price Action – Hourly Chart
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
