EURJPY Rally Targets Key 169.00 Resistance

Tues 2nd May 2023 : Daily Currency Strength Analysis

Today we’re looking at Trading Setups in:

• EURJPY (Primary Focus Pair)
• CADJPY (Covered in Video)

Primary Focus Pair: Overview

EURJPY

The JPY is the only highlighted currency on the tables today, and it is shown as the weakest across both tables.
When looking across the JPY pairs, we can see that EURJPY and CADJPY could be ones to watch.
EURJPY in particular has seen an astronomical rise of late, with price trading through the key 148.50 resistance.
The next significant level for EURJPY is up at 169.00.
This is over 2050 pips away, and could be targets for traders going long.
Fundamentally, the EUR could strengthen from the ECB hiking interest rates.
The BoJ on the other hand are known for keeping interest rates very low.
Contrasting monetary policies could fuel the rally even further.

When looking to get long, we want price to be at a level of support.
In the case of EURJPY, this support would be the recent resistance of 148.50.
If  price can retest this level and the forex pairs confirm a signal from the currency strength tables, we could look for a position in the market.

Technical Observations:

• JPY is W1 and EUR is W3.
• EUR needs to move from the weak side of the day traders table to the strong side.
• EURJPY has broken through the 2014 highs of 148.50.
• Buyers could look to target the 2008 highs of 169.00.
• If price pulls back to the 148.50 level and finds support, traders could go long.
• This level holds confluence with a trend line support. 

Todays 9am (BST) Forex Strength Vs Weakness Tables: