Technical Analysis – EURJPY sails in uncharted waters
EURJPY advances above 32-year high
Fears of a Japanese intervention increase
Oscillators point to overbought conditions
EURJPY has been in an uptrend since the beginning of the year, storming to consecutive multi-year highs. Despite a strong pullback following a currency intervention from Japan in late April, the market has been steadily moving higher above levels that the Japanese authorities were willing to protect.
Should the upward trajectory resume, the pair could meet resistance at psychological levels such as 175.00 or 180.00 last observed in 1992.
On the flipside, if the pair experiences a pullback, initial support could be found at the April peak of 171.56. Lower, the June support of 167.50 could prevent further declines. A break below that zone could trigger a retreat towards 165.34 ahead of 164.28, two previous resistance regions that could serve as support in the future.
In brief, EURJPY has been on the rise, constantly defying overbought signals. Will the Japanese side intervene?
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