EUR/JPY Price Forecast: Trading Below 166.00 After Pullback from Eight-Month Highs

• EUR/JPY Targets Eight-Month High at 166.43 Amid Bullish Trends
• 14-Day RSI Above 50 Signals Strong Bullish Sentiment in EUR/JPY
• EUR/JPY Finds Initial Support at Nine-Day EMA of 164.92

The EUR/JPY pair has paused its recent rally, currently trading around 165.80 during Thursday’s Asian session. The pair’s upward trajectory within an ascending channel pattern highlights a strengthening bullish outlook, according to daily chart technical analysis.

Moreover, the EUR/JPY pair is trading above its nine-day Exponential Moving Average (EMA), indicating robust short-term momentum. The 14-day Relative Strength Index (RSI) further supports this by remaining above the 50 level, which signifies ongoing bullish momentum. A surge above the 70 mark could signal an overbought condition, potentially leading to a corrective pullback.

Looking upward, EUR/JPY might aim for the eight-month peak of 166.43, reached on June 11, with potential to extend towards the ascending channel’s upper boundary at 167.50.

Conversely, the initial support for EUR/JPY lies at the nine-day EMA of 164.92. Should the pair break below this level, it could test the 50-day EMA at 163.18, which would dampen the short- to medium-term bullish sentiment and potentially drive prices towards the lower boundary of the ascending channel at 162.10. Additional support is found at a nine-week low of 160.98.

EUR/JPY: Daily Chart