EUR/JPY Price Forecast: Crosses above 170.00, refreshes yearly highs

• EUR/JPY climbs to 170.42, its highest level since July 2024.
• Bullish trend intact above Ichimoku Cloud, RSI nears overbought zone.
• A break above 171.09 opens path to 172.00 psychological resistance.
• Drop below 170.00 could trigger pullback toward 169.25 or July swing low at 168.45.

The EUR/JPY crosses the 170.00 threshold in the year, for the first time since July of last year, though posts minimal losses of 0.10% after hitting a yearly peak of 170.42. At the time of writing, the cross trades at 170.18 due to a risk-off environment, as US equity futures tumble amid thin volume trading, with the US markets closed in observance of US Independence Day.

EUR/JPY Price Forecast: Technical outlook

The upside path is intact, after the Japanese Yen rallied during the first two months of the second half of 2024, sending the EUR/JPY from around 175.42 to 154.39. Since then, the pair has enjoyed a recovery, paving the way for higher prices to be tested.

Momentum, although slightly overbought as depicted by the Relative Strength Index (RSI), is bullish. Worth noting that the EUR/JPY has been climbing steadily, after crossing above the Ichimoku Cloud (Kumo) on March 12.

The first key resistance would be the July 23, 2024, daily high at 171.09. A breach of the latter will expose July 19, 2024, high at 171.87, before testing the 172.00 mark. Conversely, if EUR/JPY drops below 170.00, a move towards the Tenkan-sen at 169.25 is likely. Further downside is seen at 168.45, the July 1 swing low.

EUR/JPY Price Chart - Daily