EURJPY is attempting to conquer the mid-Bollinger band around 116.30 and the nearby 116.51 high after building confidence in the previous few sessions. The positive price action from the freshly formed 3½-year low of 114.423 is also reflected in the short-term technical oscillators.
The MACD, distanced into the negative region has pushed above its red trigger line while the bullish stochastics head for the 80 mark. Moreover, the RSI has risen towards its 50 threshold, increasing odds of further advances. However, the simple moving averages (SMAs) maintain their prevailing negative bearing, boosted by the recent bearish crossover of the 200-day SMA by the 100-day one.
Should buyers overcome the mid-Bollinger band at 116.30 and the close obstacle of 116.51, the price may then jump to test the 50-day SMA at 117.56 and the adjacent 117.77 peak, coupled with the upper Bollinger band. Sustained efforts from buyers may meet a tough area of resistance from the 119.03 high to the 200-day SMA of 119.26, which includes the 100-day SMA, before shooting for the 121.13 peak.
If sellers manage to pivot the price back down, initial support could occur at the 115.44 level ahead of a revisit of the multi-year new low of 114.423. Dipping beneath this may send the pair towards the 113.71 low of November 2016 prior to shifting the focus to the 112.60 trough from back in October of 2016.
Overall, although a neutral-to-bearish bias persists in the short-term timeframe, the pair continues to encounter negative stress below 117.77, while a break below 114.423 would only intensify that outlook.
