EURJPY is strongly positive as it reached a fresh 3-year peak at 133.42 on May 18. The MACD is standing near the trigger and above the zero lines, and the RSI is gaining ground near the overbought region. The short-term simple moving averages (SMAs) are heading north, approaching the current market price.
The short-run risk is looking neutral-to-positive at the moment and another retest of the 133.42 high is likely. Particularly, a decisive close above the aforementioned level might be what the bulls are eagerly waiting for to rally towards the 137.45 barrier, registered in January 2018.
To the downside, the 20- and 40-day SMAs at 132.05 and 131.05 respectively may add some footing to the market, but a violation at this point may not attract much attention unless the price slumps below the 130.65 support, which overlaps with the lower Bollinger band and the long-term ascending trend line. Negative momentum could further strengthen if the 23.6% Fibonacci retracement level of the up leg from 114.40 to 133.42 at 128.95 is breached as well, with the 128.20 obstacle appearing next on the radar.
In brief, EURJPY has been in an upside move since May 2020 and only a decline below the 200-day SMA around 126.90 may change this view.
