EURJPY has been moving without a clear direction since mid-March albeit with very high volatility. In the past few daily sessions, the pair has rebounded after a minor pullback and it is ready to challenge its highest levels observed in 2023.
The momentum indicators are promoting this strong recovery. Specifically, the MACD histogram is strengthening above both zero and its red signal line, while the RSI has flatlined significantly above its 50-neutral mark.
If bullish pressures persist, the 2023 peak of 145.66 might act as the first barrier for buyers to claim. Piercing through that zone, the pair could ascend towards the December 2022 high of 146.73. A violation of that zone could set the stage for the eight-year high of 148.39.
On the flipside, bearish actions could send the price to test 144.85, which is the 23.6% Fibonacci retracement of the 133.39-148.39 upleg. If that barricade fails, the bears could aim for the 38.2% Fibo of 142.66 before the 50.0% Fibo of 140.89 appears on the radar. Even lower, the 61.8% Fibo of 139.12 may curb further declines.
Overall, EURJPY seems to be recovering from the latest pullback that dragged it away from its 2023 highs. Therefore, the pair’s advance could accelerate in the case that it breaks above the 145.66 ceiling.
