EURJPY is neutral in the medium term but in a shorter time frame the pair is in a bullish phase.
The market has been consolidating gains made after a rally took EURJPY to the mid-134 handle, the highest level since November 2015. Since the end of September, prices have been moving sideways in a range with strong support in the mid-131 area.
On the 4-hour chart, EURJPY bounced off the range-low and rose towards the top of the range, reaching a high of 133.87 today. Bullish momentum is still in place and the short-term upleg has only retraced by 23.6%. This Fibonacci level is now acting as an immediate support at 133.28. A break below this would see further support at subsequent Fibonacci levels at 132.91, 132.63, 132.33 before making a full retracement to re-test the 131.39 low.
Breaking resistance at the recent rally’s top at 133.87 would bring the broader range-high level into view. A rise above 134.50 would bring a resumption of the longer-term uptrend.
The intra-day bias is neutral and the RSI is flat, while the short-term bullish phase from November 8 low of 131.39 is still intact.
