EURJPY had been in a prolonged uptrend, which ceased at a fresh 15-year high of 151.60 in early May. Even though the pair experienced a mild pullback from its recent peak, it quickly found its feet and stormed back higher in an effort to extend its bullish medium-term structure.
The momentum indicators are endorsing this latest advance, with the RSI flatlining way above its 50-neutral mark and the MACD crossing above its red signal line in the positive region.
If the recent upside trajectory resumes, the bulls could attack the 15-year peak of 151.60. Breaking above that zone, the pair might ascend to form fresh multi-year highs, where the August 2007 support of 153.35 may provide upside protection. A violation of that territory could set the stage for the February 2008 low of 154.05.
Alternatively, a potential downside correction could come to a halt at the October 2022 high of 148.39, which could serve as support in the future. Diving beneath that region, the pair could challenge the 146.12 congested region that includes the May low and the 50-day simple moving average (SMA). Should that barricade fail, the 145.56 obstacle could prove to be a tough one for the bears to overcome.
Overall, EURJPY has staged a massive comeback following the recent retreat from its multi-year peaks. However, a failure to create a fresh higher high may open the door for a moderate downside correction.
