- EURJPY posts new 3-month high
- Momentum indicators are gaining ground
- Positive structure remains intact above short- and long-term diagonal lines
EURJPY is skyrocketing above the 162.00 round number, recording a fresh three-month high. The market is completing a strong bullish rally after the bounce off the 158.90 support level, posting the tenth consecutive green day.
To attract new buyers, the bulls will have to surpass today’s high and move beyond the 163.70 resistance level, taken from the peak on November 27. Another successful battle there could see the price jumping into the 164.30 barricade, registered on November 16.
Technically, the RSI indicator is trying to strengthen its positive momentum above the neutral threshold of 50, approaching the 70 level, while the MACD is extending its move above its trigger and zero lines.
Hence, a downside correction could still be possible in the coming sessions. If the pair slumps below the 20-day simple moving average (SMA) at 160.50 and the 160.25 support level, it could stabilize near the short-term ascending trend line at 159.90. Otherwise, the sell-off could expand towards the 50-day SMA at 158.90. Yet only a clear close below the long-term uptrend line of around 158.00 would disappoint medium-term traders.
Summing up, EURJPY is looking strongly bullish in the short- and long-term timeframes. To boost buying confidence, the pair will need to have a closing day above 161.85.
