EUR/JPY Price Analysis: Surges to weekly highs on upbeat sentiment, targets 150.00 mark

• EUR/JPY sees steady gains, fueled by upbeat market sentiment due to advancements in US debt ceiling talks.
• Technical analysis suggests a potential break toward the 150.00 level; however, buyer hesitation may slow the upward momentum.
• In case of a decline, immediate supports sit at the daily pivot point of 149.19, and the S1 pivot at 148.94.

EUR/JPY advances as the Asian session begins, following Thursday’s gains of 0.14%, trades at 149.40, up by 0.02%. An upbeat market sentiment courtesy of an improvement on the US debt ceiling talks amidst a light economic calendar in the Eurozone (EU) was the main catalyst for EUR/JPY’s price action.

EUR/JPY Price Analysis: Technical outlook

As of writing, the EUR/JPY hovers around the weekly highs, which, once cleared, could pave the way for further upside, with buyers eyeing the psychological 150.00 figure. Oscillators like the Relative Strength Index (RSI) are in bullish territory but almost flat, suggesting buyers might pause before launching an assault on the year-to-date (YTD) high of 151.61.

On the flip side, an EUR/JPY drop below 149.00 could put into play the 2022 swing high of 148.40, ahead of falling toward the May 17 low of 148.06.

Short term, the EUR/JPY 1-Hour chart remains upward biased and is trending up in an ascending channel, diving towards the daily pivot point at 149.19. If EUR/JPY falls below 149.19, that will expose the confluence of the S1 pivot and the bottom-trendline of the ascending channel at 148.94. Once cleared, the EUR/JPY could fall to the S2 pivot at 148.52 before testing last year’s high of 148.40.

EUR/JPY Price Action – Hourly chart