- EURJPY recoups previous losses
- Rebounds off ascending trend line
- Surpasses short-term SMAs
- Oscillators gain momentum
EURJPY is flirting with the 167.00 round number after the bounce off the long-term rising trend line and the 164.00 handle. The pair has been developing within an upward tendency since the beginning of December with no violations of the uptrend line.
Technically, the RSI is ticking higher above the neutral threshold of 50 and the MACD is strengthening its upside momentum above the zero level but is still slightly beneath its trigger line.
The pair has some room to rise until the previous 40-year peak of 171.56, so the next psychological levels such as 168.00, 169.00 and 170.00 should be closely watched.
On the other hand, a successful drop beneath the 20-day simple moving average (SMA) of 165.65 and the 50-day SMA, which stands near the uptrend line and the 164.00 mark, may switch the outlook to a neutral one. Even lower, the 161.90-162.60 support zone may halt downside pressures.
All in all, EURJPY is currently recovering some ground, adding optimism for further gains in the near future.
