EURJPY has managed to find footing just beneath the 200-day simple moving average (SMA) off the Ichimoku cloud’s upper band at 130.43, preserving the recent bullish tone. The SMAs are currently not endorsing a definitive trend in the pair.
The Ichimoku lines are indicating a minor pause in upside forces, while the short-term oscillators are transmitting conflicting messages in directional momentum. The MACD, in the positive region, is fading toward its red trigger line, while the RSI is improving in the bullish territory. The stochastic oscillator is showing signs of waning in its negative charge.
If buyers push past the red Tenkan-sen line at 130.83, the nearby 131.29-131.59 upside border could attempt to dismiss the climb from gaining pace. Otherwise, additional advances may then snag at the 132.00 hurdle before the bulls jump to tackle the November 4 and October 28 highs of 132.55 and 132.91 respectively.
To the downside, the horizontal 200-day SMA at 130.55 coupled with the cloud’s upper edge at 130.43 could provide initial support ahead of the 100-day SMA at 129.98. Sinking deeper into the cloud, the bears could then meet the 50-day SMA at 129.51 prior to confronting the 128.97-129.27 support barrier. Surrendering extra ground, the pair may target the 128.00 handle before challenging the critical 127.08-127.49 support section, which has held since February 2021.
Summarizing, EURJPY’s bullish mood remains active north of the cloud and the 130.00 trough. That said, a broader neutral bias appears to be reigning in the medium-term picture.
