EURJPY has been grinding higher, hitting its best levels in 15 years earlier today. The series of higher highs and higher lows remains in place, keeping the pair in a clear uptrend.
As a testament to how powerful the rally has been, the pair is trading near its upper Bollinger band and well above its longer-term moving averages (MAs). Similarly, momentum indicators such as the RSI and the MACD are flashing bullish signals, although neither is at extreme levels yet.
Another push higher could encounter some resistance near the 161.70 area, defined by the inside swing high in February 2008. If the bulls charge ahead, the next region to give them trouble might be the 165.00 barrier, marked by the highs of April 2008. Even higher, the focus would shift to the 167.00 zone, which acted as support multiple times in the summer of 2008.
Now if sellers manage to retake the wheel, the first barrier to their drive lower would likely be the 158.00 territory, which served as resistance in recent weeks and might now provide support. Penetrating below that, the spotlight would fall on the 155.50 hurdle, which is roughly where the 50-day MA has converged as well.
All told, the picture remains decisively bullish. It would take a clean break below the recent low of 151.40 to change that.
