EURJPY skyrocketed to a fresh more than eight-year high of 148.60 earlier today but quickly returned some of the gains. The aggressive advance above the 146.35 support added 1.6% to the pair but the technical oscillators are looking overbought at the moment. The RSI found a strong obstacle near the 70 level and is pointing slightly down, while the MACD is still extending its upside pressure above its trigger and zero lines.
Should the pair manage to strengthen its positive momentum and jump above its intraday high, the next resistance could come around 149.75, taken from the peak in December 2014. The psychological mark of 150.00 would also be a key level for traders to have in mind.
However, if prices are unable to break higher, the risk would shift to the downside for a potential bearish correction, with the 147.85 support coming first into focus. A drop lower would signal deeper declines until the 146.35 barrier and the 20-day simple moving average (SMA) at 145.80 ahead of the 145.55 line, taken from the inside swing highs on March 2.
All in all, EURJPY is strongly bullish in the short-to-medium-term timeframes and only a slip beneath the SMAs and the Ichimoku cloud may switch the outlook to neutral.
