EURJPY recently hit its highest level since January 1992 but faced a pullback following suspected intervention from Japan. Despite this correction, the pair is showing signs of bouncing back and erasing the losses from last week.
Looking ahead, if the upward momentum continues, EURJPY could encounter resistance at 173.50 before potentially reaching its 32-year peak of 175.41. Beyond that, the psychological level of 180.00 may present a challenge for buyers.
On the downside, if the pair extends its decline, it could test support at 171.50, which coincides with the April high. Further down, the June support level of 167.50 could act as a barrier against additional losses. A break below that level might lead to a retreat towards 165.34 or 164.28, where previous resistance zones could turn into support.
Despite the setback triggered by possible Japanese intervention last week, bullish sentiment appears to be strong as the price aims to revisit its 32-year high. The question remains whether Japan will intervene again to influence the direction of EURJPY.
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