EUR/JPY builds base slightly near 40-year high
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EURJPY stands well above uptrend line.
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RSI flattens but MACD strengthens its momentum.
EURJPY has rebounded off the long-term ascending trend line near 167.70, sending the market above the previous peak of 170.80. A successful jump above the 40-year high of 171.56 could help the pair to surge towards the next round numbers such as 172.00 and 173.00.
According to the technical oscillators, the RSI is flattening above the neutral threshold of 50, while the MACD is extending its positive momentum above its trigger and zero lines.
In the negative scenario, a slide beneath the 170.80 support and more importantly beneath the 20-day simple moving average (SMA) at 169.70, would take the market towards the 50-day SMA at 168.50. Falling below this area would help shift the focus to the downside towards 167.30, switching the outlook to neutral.
Overall, EURJPY has been bullish since December 2023. Near-term weakness is expected to remain until there is a rally above the multi-year high of 171.56.
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