EURJPY is recovering from its spike below the 133.00 mark, where the rising 100-day simple moving average (SMA) underpinned the price, following one-month of declines from the multi-year peak of 140.00. Despite the recent retracement in the pair, the ascending SMAs are endorsing the positive outlook.
The Ichimoku lines indicate that negative forces have softened, while the short-term oscillators are conveying mixed messages in directional momentum. The MACD remains beneath its red trigger line and is promoting negative impetus. However, the climbing RSI and the positively charged stochastic oscillator are both suggesting buyers currently have the upper hand.
If positive pressures endure, upside limitations could commence around the 136.30-136.73 region, the former being the 23.6% Fibonacci retracement of the uptrend from 124.38 until 140.00. If the pair ascends past this obstacle, the bulls may then propel for the 137.70-138.38 resistance section before challenging the 139.00 handle and opening the door for a revisit of the multi-year top of 140.00.
Otherwise, if positive impetus starts to wane and the price recoils beneath the red Tenkan-sen line at 135.48, tough support may occur around the advancing 50-day SMA at 135.00. Slipping further, the Ichimoku cloud’s upper band could try to curb the price from confronting the 38.2% Fibo at 134.00. However, should selling interest continue to grow, the 133.00 hurdle may return to the spotlight ahead of a fortified zone of support linking the 100-day SMA at 132.41 with the 131.90 barrier. From here, traders’ focus could then turn to the 130.96-131.37 boundary, containing the 200-day SMA.
Summarizing, EURJPY is exhibiting fresh sturdy upside backing and should the price remain north of the 133.00 mark and the 132.65 trough, the odds for rekindling the broader positive bias improve. Yet, if the price recedes below the 135.00 hurdle and back into the cloud, this price action could reinforce negative tendencies.
