EURJPY is extending beyond the 129.00 handle after a surge of bullish price action from the 128.00 level propelled the pair back above the 50- and 100-period simple moving averages (SMAs). The slight upturn in the 50-period SMA, is suggesting that the pair’s bullish trajectory is beginning to strengthen, while the softened decline in the 100-period SMA is promoting a more neutral price phase.
The short-term oscillators are reflecting an increase in positive momentum. The MACD, in the bullish region, is advancing above the zero threshold and its red trigger line. The climbing RSI is toying with the 70 overbought level, while the stochastic lines are sponsoring additional positive price action in the pair.
Sustaining the current trajectory, resistance could commence at the approaching 200-period SMA at 129.43 that is safeguarding the bearish bias, ahead of the 129.52-129.75 obstruction. Overstepping these barriers, the bulls may then confront the 129.97-130.22 resistance border. In the event buyers recapture the area north of this boundary, upside momentum could power up, sending the price towards the 130.60 high prior to testing the 131.00 handle.
If buying interest starts to diminish and the price retreats beneath the 129.00 level, initial support could stem from the 128.55 barrier ahead of the converging 100- and 50-period SMAs at 128.34 and 128.27 respectively. Continuing to move southwards, a week-long of lows residing between the 128.00 hurdle and the 127.80 level could provide footing. However, if sellers dive beneath this section, which encompasses the lower Bollinger band, the price could seek out the 127.30-127.50 support band before traders’ attention shifts towards the 127.00 mark.
Summarizing, EURJPY is developing a neutral-to-bullish tone as it steers past the 129.00 psychological number. That said, the claws of a neutral picture may still cling to the newfound upside surge in the pair.
