EURJPY has been in an upside movement near 130.00 after the bounce off the 127.50 support level around the lower Bollinger band. The price overcame the 20- and 40-day simple moving averages (SMAs) and it’s possible to jump above the 200-day SMA in the next few sessions as well, confirming the bullish bias.
Technically, the indicators are showing weak signals. The RSI is moving sideways in the positive region, while the MACD is flattening near its zero line and above its trigger line.
Immediate resistance could come from the flat 200-day SMA currently at 130.50 ahead of the 131.40 resistance level, taken from the latest inside swing lows. If the bulls take the upper hand and continue the recent move, the next target could be the 132.90 and 133.50 barriers.
On the flip side, a decline below the 40-day SMA could meet the 20-day SMA at 128.50 and the 127.50 support before touching the lower Bollinger band at 127.00. More losses could open the door for the 125.15 hurdle, achieved on January 18.
All in all, EURJPY has been in a slight descending move since June 1, but in the very short-term, the bias is distinctly bullish.
