EURJPY continues gaining ground, finishing the day lower only once thus far this month. In addition, the pair recorded a seventeen-month high of 130.76 in yesterday’s trading.
Turning to technical indicators, the MACD is projecting a bullish picture. Specifically, the indicator is positive as well as above its red signal line. The RSI is in bullish territory but it is steeply heading lower from overbought levels. This points to negative market momentum in the very short-term.
Yesterday’s high of 130.76, combined with the 131 handle, could act as a barrier to the upside. Further up, the area around the upper Bollinger band at 131.94 might offer additional resistance.
On the downside, the area around the 130 mark, a potential psychological level, could provide support. Notice that the price is currently close to this point. Additional declines would shift focus to the middle Bollinger line – a 20-day moving average (MA) – at 127.09 for further support.
As regards the medium-term picture, it is bullish at the moment with both the 50- and 200-day MAs being positively sloped. Additionally, the pair has been trading above both MAs since late April.
