The EUR/JPY currency pair halted its five-day winning streak, trading near 165.80 during early Asian hours on Thursday. Technical analysis suggests the pair is maintaining a bullish momentum, moving within an ascending channel on the daily chart.
Technical Indicators Signal Sustained Uptrend
The cross has climbed above the nine-day Exponential Moving Average (EMA), indicating strong short-term momentum. The 14-day Relative Strength Index (RSI) remains above the 50 threshold, confirming a persistent bullish bias. However, a rise beyond the 70 RSI mark could signal an overbought condition and warn of a potential correction ahead.
Resistance and Support Levels to Watch
On the upside, EUR/JPY may challenge its eight-month high of 166.43, set on June 11, with further resistance near the channel’s upper boundary at approximately 167.50.
Initial support lies at the nine-day EMA around 164.92, followed by the 50-day EMA at 163.18. A decisive break below these levels could dampen both short- and medium-term momentum, potentially pushing the pair toward the ascending channel’s lower boundary near 162.10. Additional support is seen near the nine-week low of 160.98.
