EURJPY is edging higher following the successful break of the 145.71 level that troubled the bulls in February. The pair is currently a tad below the October 21, 2022 high of 148.39 as EUR bears are trying to stage a comeback. This will not be easy as the Average Directional Movement Index (ADX) is hovering well above its 25-threshold, signaling a decent trending market.
Hence, EUR bears have understandably turned their focus to the stochastic oscillator. This is trading at the highest level since the October 21, 2022 peak, thus potentially infusing some confidence into the bears that the November 2022 downward move could be repeated. However, it is worth noting that the stochastic could hover in its overbought area for an extended period of time.
Should the bears decide to take over the market, they would have to deal with the December 27, 2013 high of 145.71. Lower, the June 8, 2022 high at 144.24 could trouble them, ahead of the busier 142.18-143.61 area. This is defined by the 23.6% Fibonacci retracement of the March 7, 2022 – October 21, 2022 uptrend, and the 50-, 100- and 200-day simple moving averages (SMA) respectively. A break of this range would most likely constitute a reversal of the short-term bullish trend.
On the other hand, EURJPY bulls would aim for a retest of the Oct 21, 2022 high of 148.39. A successful break of this level would open the door for the December 18, 2014 high of 149.77. Such a move though is bound to energize the EURJPY bears.
To sum up, EURJPY bulls feel confident following the recent upleg as the bears are trying to stage a reversal. The 145.71 level remains key for short-term momentum.
 is hovering well above its 25-threshold, signaling a decent trending market. ){kind=link}