- EUR/JPY reaches a new 15-year high, trading steadily at 164.06, with a weekly gain of over 2% and eyes set on July 2008’s high of 169.97.
- The pair exhibits a strong bullish pattern on the weekly chart, indicating sustained buyer control and the potential to breach the 165.00 resistance.
- A failure to maintain above 164.00 could trigger a pullback towards 163.08, with further support at the Tenkan-Sen line at 162.16.
The EUR/JPY rallied to a new 15-year high on Wednesday, extending its gains for four consecutive days. Weekly, the pair is up more than 2% and at the time of writing, exchanges hands at 164.06, unchanged as Thursday’s Asian session begins.
From a monthly perspective, the EUR/JPY is set to test July’s 2008 high of 169.97, ahead of challenging the 170.00 psychological level. However, on its way north, the cross-pair would challenge July’s 2008 low of 165.31, which, once cleared, the pair has a free ride toward the 169.90 area.
Zooming into a weekly chart, the EUR/JPY prints a three-white soldiers chart pattern, which suggests buyers are in charge as momentum builds to the upside. A breach of the 165.00 mark could pave the way to test 165.59, followed by the abovementioned July 2008 high of 169.97.
Given the backdrop, the EUR/JPY confirms the uptrend, though buyers must cling to gains above 164.00, if they would like to remain hopeful for higher prices. Failure to do so, a pullback toward 163.08, the November 15 low, is on the cards. Further downside is expected at the Tenkan-Sen at 162.16.
Conversely, if EUR/JPY buyers reclaim 165.00, the path would be clear to test higher prices, on the way to challenge the 2008 high at 169.97.
EUR/JPY Technical Levels