EURJPY is still eagerly pushing for a close above the 142.00 psychological mark, which came to oppose Friday’s quick bounce on the 20-day simple moving average (SMA) and the 139.40 level.
The ascending simple moving averages are endorsing the positive trend in the market, while the rebound in the RSI, which is trying to print a new higher high above its 50 neutral mark, is an encouraging sign that buyers are still in play. The upward trajectory in the Stochastics is backing this narrative as well, though the MACD is signaling some caution as its recent improvement was not enough for the indicator to climb above its red signal line. The momentum indicators on the four-hour chart are rising at a softer pace, mirroring some discomfort among traders too.
If upside pressures persevere above the 142.00 mark, the pair may attempt to breach the 7½-year high of 144.24 with scope to meet the tough resistance line seen within the 144.40 – 145.00 region. Breaking that ceiling, the rally may accelerate up to 148.00, where the 161.8% Fibonacci extension of the latest pullback is placed.
In the event of a downside reversal, the price may immediately seek support near its 20-day SMA at 140.00, where any violation could confirm an extension towards the 50-day SMA and the tentative supportive trendline seen at 137.87. If the latter fails to add footing, the bearish action may fortify towards the 134.11 key barrier. Any step lower from here would neutralize the long-term outlook.
All in all, EURJPY is looking cautiously bullish in the short-term picture. A clear break above the 142.00 may eliminate any skepticism and shift the focus back to June’s highs.
