The EUR/JPY pair is currently trading within an ascending channel, supported by the 200-period and 50-period EMAs. The price recently bounced off the lower trendline, maintaining a bullish outlook for now.
Key Levels to Watch:
Resistance: The price is approaching a key resistance at 163.538. A breakout above this level could signal the continuation of the bullish trend.
Support: Support lies at the lower trendline and the 160.134 level. A break below these could indicate a bearish reversal.
RSI Insight: The RSI suggests a potential overbought condition, hinting at a possible short-term correction. However, a pullback followed by another rally could offer a strong buy signal.
As long as EUR/JPY remains within the ascending channel and above the key EMAs, the outlook stays bullish. Traders should watch for a breakout above 163.538 for confirmation of further upward momentum or look for buy opportunities on pullbacks to support levels.
