- EURJPY takes a breather after one-month high
- A break above the 160 area is required
EURJPY has been moving back and forth within the 158.50-160.00 region following last week’s aggressive bounce to a one-month high of 160.17.
Technically, the short-term range is formed by the 50% and 61.8% Fibonacci retracement levels of the previous downfall, but the series of higher highs and higher lows that started from December’s trough are still promising.
Moreover, the RSI is still fluctuating above its 50 neutral mark and the MACD continues to strengthen, albeit marginally above its zero and signal lines, keeping the bias on the positive side.
Practically, the bulls will need a clear close above the 160.00-160.50 region to reach the 78.6% Fibonacci mark of 162.00 and the broken ascending trendline from March 2023 at 162.70. Additional gains from there could bring November’s ceiling of 163.70-164.28 under examination.
In the event the price tumbles below the 158.50 floor, some consolidation could develop around the 38.2% Fibonacci of 157.40 before the sellers target the lower band of the bullish channel at 156.45. A bearish breakout there might see an extension towards the 200-day exponential moving average (EMA) at 155.20.
Summing up, EURJPY has some bullish power in the tank, though only a durable move above the 16.00-160.50 region could create more upside.
