Home Forex I’m just shy of hitting a YTD high above 161.00 as a doji looms

I’m just shy of hitting a YTD high above 161.00 as a doji looms

by SuperiorInvest


  • EUR/JPY hit a year-to-date high, boosted by positive sentiment and dovish comments from the BoJ.
  • Above 161.00, eyes on 162.00 resistance; below 160.27 swing low may test 160.00 support.
  • Technical analysis suggests a pullback, with critical supports at 160.00, today’s low 160.77 and pivot 160.46

EUR/JPY broke through 161.00 to hit a two-week high of 161.26, boosted by risk-on momentum and “dovish” comments from a member of the Bank of Japan (BoJ). At the time of writing, the pair is hovering around 161.00, with a minimal gain of 0.05%.

Daily diagram shows that the EUR/JPY pair is biased upwards. Still, Friday’s price action is forming a doji, which does not indicate commitment by buyers or sellers to their positions. So if a buyer recovers 161.00, look for a move up to 162.00. On the other hand, if sellers step in and clear the February 5 swing low at 160.27, it could pave the way for a challenge to 160.00.

EUR/JPY Price Action – Daily Chart

In the short term, the divergence between the EUR/JPY price action study and the Relative Strength Index (RSI) study could open the door for a pullback. The first support is seen at the 160.00 confluence of the Tenkan and Kijun-Sen, followed by today’s low of 160.77, followed by the daily pivot at 160.46.

EUR/JPY Price Action – Hourly Chart

Source Link

Related Posts