EURJPY surged above the 20-day simple moving average (SMA) yesterday, remaining below the more-than-three-year high of 134.14.
Following an escape from the negative level, the RSI is currently developing with positive momentum above its neutral threshold of 50, while the MACD is slowing down in bullish territory, holding beneath its trigger line. In trend indicators, the red Tenkan-sen line is still moving above its blue Kijun-sen line and the Ichimoku cloud is heading north.
If the pair rises further, immediate resistance might be found at the 134.11 high, before the price jumps towards the 137.50 barrier, taken from the peak in January 2018.
The next support might be found between the 40-day SMA, which overlaps with the 132.40 line, and the 130.93 barrier, if the market continues to lose ground. Before the market retests the 129.28 level, a major move could drive prices to the 23.6% Fibonacci retracement level of the up leg from 114.40 to 134.11 at 129.50. The next stop might be at the 200-day SMA at 127.38.
In the long-term view, the pair is bullish as long as it remains above the 200-day moving average. If it crosses this line, bears may gain the upper hand.
