EURJPY has plotted a minor pullback from its freshly achieved 31½-month high of 132.52, but the ripple effect from this development clearly lacks the force necessary to jolt the six-month hike from the 121.61 trough. Moreover, the advancing simple moving averages (SMAs) are nourishing the sturdy uptrend.
Positive sentiment is the frontrunner, and this is being reflected in the Ichimoku lines and the short-term oscillators. The MACD some distance beyond zero, is holding above its red trigger line, while the upward pointing RSI is looking set to reclaim the 70 overbought level. The positively charged stochastic oscillator is also promoting additional price gains in the pair.
If buying interest intensifies and the price breaches the new multi-year high of 132.52, preliminary upside constraints may emanate from the resistance section of 133.06-133.48. Surpassing this boundary, buyers could then target the 134.16 and 134.79 obstacles, identified in February 2018. Triumphing over these deterrents too, the price may then pilot for the 135.83 high.
Otherwise, if sellers manage to take the reins, immediate friction could occur at the red Tenkan-sen line at 131.79 before a vital support region from 131.08 until 130.58 comes into view. The latter also overlaps with the uptrend line, pulled from the 121.61 mark. Breaking below this trend line, the 50-day SMA at 130.26, the Ichimoku cloud and the 129.56 trough could attempt to dismiss a deeper decline from unfolding. Failing to hold here could see the price sinking towards a support zone existing between the 100-day SMA at 128.62 and the 128.17 barrier.
In conclusion, EURJPY is retaining a firm bullish outlook above the ascending line and the SMAs. A break below this diagonal border could shake the pair’s bullish demeanour, while a retreat below 129.56 could strengthen negative pressures.
