EUR/JPY Hits 11-Month Highs Above 168.50, But RSI Flags Overbought Risk

EUR/JPY Hits Fresh 11-Month High, Approaches Key Resistance at 169.00

The EUR/JPY pair extended its winning streak for the third straight session on Monday, surging past 168.50 and marking a fresh 11-month high at 168.64 during the Asian session. The strong bullish move follows a sustained uptrend within an ascending channel pattern, signaling reinforced bullish momentum.

Technical Analysis: Bulls in Control, But RSI Raises Caution

From a technical perspective, the pair is firmly above the nine-day Exponential Moving Average (EMA), currently around 167.07, confirming a short-term bullish bias.

However, the 14-day Relative Strength Index (RSI) has crossed above the critical 70 mark, signaling overbought conditions. While this doesn't confirm an immediate reversal, it does indicate that a short-term correction could be due before a fresh leg higher.

Key Resistance and Support Levels to Watch

• Immediate resistance: Upper channel boundary near 168.80, followed by the psychological 169.00 level.
• Next bullish target: A confirmed breakout above 169.00 could trigger a run toward the 170.00 area.
• Initial support: The nine-day EMA at 167.07, and further below at 166.30, a previous breakout zone.

Broader Market Context

The Euro remains firm amid relative strength in European data and monetary policy stability, while the Japanese Yen remains under pressure due to persistent Bank of Japan dovishness and global risk-on sentiment.

Internal Linking Suggestions (for Tredu.com):

• EUR/JPY Live Chart and Key Technical Levels
• How to Trade Overbought RSI Conditions
• Forex Signals: EUR/JPY and JPY Pairs Outlook