Mon, Mar 27, 2023 @ 17:15 GMT
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EURJPY Battles With Upper Boundary of Trading Range

EURJPY is struggling to surpass the upper boundary of the trading range at 142.70, which is also the 23.6% Fibonacci retracement level of the upward wave from 124.40 to 148.40.

In trend indicators, the 20-day simple moving average (SMA) posted a bullish crossover within the 200-day SMA, mirroring the latest rebound off the 139.90 support level. The MACD is extending the positive move above its trigger and zero lines; however, the RSI is pointing down in the bullish territory.

Should the price close decisively above the roof of the channel, seen at 142.70, bulls could extend the upside move towards the 146.70-147.10 resistance area. Further advances could then target the barrier of the eight-year high of 148.40.

On the other hand, a decline could meet the 50-day SMA currently at 141.50 and the bullish crossover of the 20- and 200-day SMAs at 141.10. Slightly lower, the price could retest the middle line of the range approximately at 139.90 before the test of the 38.2% Fibonacci at 139.20. Even lower, the 138.00 psychological mark is a crucial level for a rebound but any moves below it could switch the outlook to negative hitting 137.40 and the 50.0% Fibonacci at 136.35.

All in all, EURJPY shows some signs of bullish movements in the short-term, but it needs to overcome successfully the 23.6% Fibonacci at 142.70.
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