EURJPY has come under renewed buying interest after the rebound on the 132.10 support, which overlaps with the short-term ascending trend line in place since the end of March. In the 4-hour chart, prices are moving above the 20- and 40- simple moving averages (SMAs), signaling further gains.
From the technical point of view, the MACD oscillator is trying to create a bullish crossover with its trigger line, while the Relative Strength Index (RSI) indicator is pointing to the upside in the positive area. Both are moving with weaker momentum than before.
To the upside, there is an immediate resistance at the 133.00 strong psychological level, which was tested several times in the past. A climb above that, the next resistance to watch is the 50.0% Fibonacci retracement level of 133.20 of the downleg from 137.50 to 129.00. If the price successfully surpassed this area, there is a scope to challenge 133.80.
Should prices reverse lower, immediate support should come at 132.10, which is near the diagonal trend line. A slip below this line would reinforce the bearish structure again and re-challenge the 131.70 support.
