EURJPY is confronting the simple moving averages (SMAs) around the 130.00 price region after recently rocketing from a 15-month low of 124.38 – an upward move that has recouped more than fifty percent of the collapse from the 133.14 peak. Currently, the dipping SMAs are not reflecting a convincing trend but have managed to curb additional gains in the pair.
Nonetheless, the short-term oscillators are indicating strengthening positive momentum in the pair. The MACD, in the negative zone, has distanced itself above its red trigger line and is heading for the zero threshold, while the RSI is pushing higher in the bullish region. The stochastic lines are positive around the 80 overbought level, signalling persistent upward impetus in the pair.
At the moment, positive developments in the pair are shaky around the converged 50- and 100-day SMAs at 129.58 and under the 130.00-130.29 resistance band, which is an area existing between the 200-day SMA and the February 25 high. If the pair successfully overcomes these obstacles, the bulls may then aim for the 130.76 barrier before propelling to test the upper Bollinger band at 131.60 and the adjacent 131.90 high.
Alternatively, if positive drive in the pair falters in the neighbourhood of the SMAs and the price retreats below the 50- and 100-day SMAs, initial support could stem from the zone between the 129.04 inside swing high and the mid-Bollinger band at 128.47. If buyers fail to find footing in this region, the bears could then drive the price towards the 128.00 handle. In the event selling interest amplifies further, a dive deeper than the 127.40 low could spark concerns about dominating negative pressures as the bears sink towards the 126.72 barrier.
Summarizing, EURJPY is exhibiting a strong bullish tone, but negative risks may continue to linger should the price fail to advance beyond the SMAs and the 130.29 high.
