EUR/JPY continued its upward climb on Thursday, marking its fifth consecutive daily gain and touching a fresh all-time high of 179.82 during the European session. The pair broke decisively above the upper boundary of an ascending wedge formation, confirming a bullish breakout supported by strong buying momentum.
Technical indicators signal continued strength
Momentum indicators reinforce the bullish outlook. The 14-day Relative Strength Index (RSI) is hovering just below the 70 threshold, indicating sustained upward momentum but also hinting at potential overbought conditions if it crosses higher. The pair’s position above the nine-day Exponential Moving Average (EMA) further underscores a solid short-term uptrend.
On the upside, the next key resistance is the psychological 180.00 level, which, if breached, could open the door for further gains toward 182.00 as bullish sentiment remains firmly in control.
Potential correction levels to watch
While the broader bias remains constructive, traders should watch for a potential pullback. A retreat toward the former wedge resistance could signal the start of a corrective phase.
Initial support lies near the 179.00 psychological mark, followed by the nine-day EMA at 178.30. A break below this zone would weaken near-term momentum, exposing the next downside targets at 176.70—the lower boundary of the previous ascending wedge—and the 50-day EMA near 175.83.
Overall, EUR/JPY retains a bullish technical structure, with any dips likely to attract fresh buying interest as long as the pair holds above key moving averages.
