EURJPY has been in a prolonged uptrend since the beginning of the year, posting consecutive multi-year highs. However, in the last week, the pair has been flat near 15-year peaks, with buyers struggling to push the price higher on fears of an impending intervention by Japanese authorities.
The momentum indicators currently suggest that bullish forces are reigning supreme. Specifically, the MACD is strengthening above zero and its red signal line, while the RSI is ticking up deep within its positive territory.
Should the recent range break to the upside, the price could advance towards fresh multi-year highs, where the February 2008 peak of 161.38 could act as immediate resistance. Piercing through that zone, the price may challenge the April 2008 high of 164.97. A violation of that region could open the door for the October 2007 resistance of 167.72.
On the flipside, bearish actions could send the price to test the recent support of 157.64. If that floor collapses, the spotlight could turn to 153.31 ahead of the July low of 151.39. Failing to halt there, the price may decline towards the June bottom of 148.58.
In brief, EURJPY has been rangebound for the past few days, but the broader technical picture remains bullish. Nevertheless, traders should be cautious as a decisive spike above the latest range could trigger an intervention by Japanese authorities.
