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EURJPY Ranging Since Reaching 18-Month High, Medium-Term Bullish

EURJPY has experienced significant advancing since mid-April, reaching all the way up to 130.76, the near eighteen-month high from July 11. The pair has since moved within a relatively narrow range.

Delving into the Ichimoku analysis, the Tenkan-sen line (red) remains above the Kijun-sen (blue) after crossing above it in late June – this positive alignment is suggesting the existence of a bullish bias for the pair.

Turning to RSI and looking at momentum in the very short-term, the indicator is comfortably in bullish territory at 60 but it flatlined, hinting to neutrality.

Immediate intra-day resistance could come around the Tenkan-sen at 129.49 – notice that this level was briefly violated today with the price subsequently falling below it. Further up, an additional barrier to the upside might be formed by the July 11 high of 130.76 and 131 handle.

On the downside, the area around the 129 mark, another potential psychological level (similar to 131) which was of significance recently, could offer support. A break below would shift focus to the Kijun-sen at 127.20 for additional support.

Regarding the medium-term picture, it is clearly bullish given the upward sloping 50- and 200- day moving average (MA) lines. In addition, price action has been taking place above both MAs since late April.

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