EURJPY is sustaining its bullish demeanour as it is steadily creeping higher above the uptrend line, drawn from the 121.61 trough. The rising simple moving averages (SMAs) and the Ichimoku cloud are defending the positive structure, nurturing the price’s advances off the cloud’s upper surface. Furthermore, the Ichimoku lines are conveying growing positive momentum despite the recent flattening of the blue Kijun-sen line.
The short-term oscillators are also proposing additional gains in the pair. The MACD, some distance in the positive region, is holding above its red trigger line, while the RSI is pointing north, located just beneath the 70 overbought level. Moreover, the stochastic oscillator is maintaining its positive charge, endorsing improvements in the price.
If buyers continue to lift the pair, preliminary upside constraints may come from the multi-year high of 129.97 and the resistance section of 130.14-130.50. Conquering these nearby obstacles, the bulls may then meet the 131.24 barrier, which happens to be the 176.4% Fibonacci extension of the down leg from 127.06 until 121.61. Should the pair improve further and step over the 132.00 handle too, the price could float up to the next limiting region of 133.12-133.48.
Otherwise, if sellers dip the pair under the red Tenkan-sen line at 128.92, early support could arise from the 128.17 low and the adjacent blue Kijun-sen line beneath. The next critical downside target is the uptrend line and the 127.30 border – trailed by the 50-day SMA currently at 127.14. A deeper pullback could then challenge the cloud and the 126.09 support.
Summarizing, EURJPY’s sturdy bullish bias may persevere should the pair endure above the ascending trend line, the 127.30 barrier and the Ichimoku cloud. Yet, a break below the 125.00-125.26 support zone could undermine the positive picture.
