Euro's Ascent Continues: EUR/JPY Targets 172 on Risk-On Sentiment

EURJPY trades above 169 as risk sentiment pushes Euro higher. It hits an intraday high of 169.40  and is currently trading at approximately 168.96.The short-term outlook for this pair is favorable, provided it stays above 167.60 holds.

Recently, the euro has demonstrated notable strength against the U.S. dollar, reflecting a variety of interconnected factors. Primarily, the reduction of geopolitical tensions in the Middle East—facilitated by a U.S.-brokered ceasefire between Iran and Israel—has diminished demand for traditional safe-haven assets such as the dollar.

Technical Analysis:

The EUR/JPY pair is trading above  55 EMA,  200 and  365-H EMA  on the 4-hour  chart.

• Near-Term Resistance: Around 170 a breakout here could lead to targets at 170/171/172.
   
• Immediate Support: At 168  if breached, the pair could fall  to 167.60 166.50/ 165.95/165.55/164.50/164.
  
  Indicator Analysis 4-hour chart):

1. CCI (50): Bullish
2. Average Directional Movement Index: Neutral

Overall, the indicators suggest mixed trend

Trading Recommendation:

It is good to buy on dips around 168.50   with stop loss at 167.60 for a TP of 171/172.