EURJPY is looking strongly bullish in the short-term after surging above its four-hour moving averages. Prices hit a 29-month high of 130.65 and the technical indicators are all pointing to further positive momentum in the near term. The RSI is pointing upwards in the positive region, while the MACD is advancing above its trigger line.
Immediate resistance to further gains would likely come from the 29-month high of 130.65, which was created earlier today. If there is a successful break above this area, further resistances could be met around 133.10, registered in September 2018.
If, however, the strong upside momentum was to lose steam and the pair reverses lower, support would initially come from the 20- and 40-period SMA at 130.10 and 129.90, respectively. Slipping below these levels, the ascending trend line could come in focus around 129.75, while a break of the line could hit the 129.50 support. Slightly below this barrier, the 23.6% Fibonacci retracement level of the up leg from 125.07 to 130.65 at 129.30 could halt bearish movements.
In the medium-term picture, the bullish outlook remains intact, though a penetration of the uptrend line could switch the bias to neutral.
