EURJPY’s latest aggressive run recently paused way above the 200-period simple moving average (SMA) at 118.20 after price action achieved footholds from the 115.32 level, on the Ichimoku cloud’s lower band and the 50-period SMA. The pair is in the process of pushing above this point, something also reflected in the now climbing Ichimoku lines.
The MACD, deep in the positive region, is barely below its red trigger line looking to move back above it, while the RSI hovers bullishly beneath the 70 level. Likewise, the stochastic lines seem to exhibit a positive tone zig zagging below the 80 mark, and holding above a previous low. Furthermore, backing a positive outlook are the rising 50- and 100-period SMAs and the approaching bullish overlap of the 200-period SMA by the 50-period one.
Should buyers take the upper hand and extend above the 118.20 level, the significant 118.72 and 119.03 peaks could draw traders’ attention ahead of the 119.70 and 119.84 highs from the end of March.
If sellers re-emerge, support may commence from the red Tenkan-sen line at 117.84 ahead of the trough of 117.51. Diving lower, sellers may encounter a key limiting region from the 117.00 obstacle to the 200-period SMA of 116.75, which encapsulates the inside swing high of 116.85 and the blue Kijun-sen line, not to mention the nearing bullish crossover. Should this zone fail to halt declines, the pair may meet the 50-period SMA at 116.60 before challenging the 100-period SMA at the 116.19 inside swing high.
Summarizing, the very short-term bias looks neutral-to-bullish above 117.51 and a break above 119.03 could boost positive sentiment. However, only conquering the 121.13 peak may shift the picture to a bullish one.