EURJPY is surging above the short-term simple moving averages (SMAs) after the strong rebound off the 140.90 support level and the long-term ascending trend line. The pair is currently penetrating the near-term downtrend line to the upside, suggesting that the broader bullish outlook will continue again.
The technical oscillators are mirroring this upside move as the RSI is pointing north above the neutral threshold of 50, while the MACD is surpassing its trigger line, but it is still beneath the zero level.
To the upside, emanating pressure over the last couple of months has denied upside moves. If buyers manage to remain above the falling trend line, a revisit of the 147.10 resistance level could unfold. Overcoming these constrictions could see resistance develop at the eight-year high of 148.40. Another leg up could tackle the peak from December 2014 at 149.75.
Otherwise, if sellers drive the pair below short-term diagonal line again, then the 50- and the 20-day SMAs at 144.80 and 144.17 could interrupt the pair ahead of the 23.6% Fibonacci retracement level of the up leg from 124.40 to 148.40 at 142.72. In the event selling interest persists, the key support region of 140.90 barrier could halt the decline before battling with the 200-day SMA at 139.80. Should it fail to do so, the 38.2% Fibo of 139.20 could challenge the bears, shifting the outlook to negative.
Summarizing, the long-term picture remains positive, while the short-term view is currently switching to bullish as well.
