FXstreet.com (San Francisco) - EUR/JPY extended another leg higher on Tuesday, stretching above resistance in the 97.00 area to record a fresh 5-day high of 97.50, then pulling back to close the US session at 97.02, around 50 pips above its starting price.
Technically speaking, the rally stalled ahead of a key area of confluence: the 55-day EMA and the 50% Fibonacci retracement level of the 101.60/97.12 decline, at 97.80. Although the underlying trend bias is bearish, the path of least resistance in the short-term may remain to the upside until further sellers commit, likely at the mentioned area of resistance.
Technically speaking, the rally stalled ahead of a key area of confluence: the 55-day EMA and the 50% Fibonacci retracement level of the 101.60/97.12 decline, at 97.80. Although the underlying trend bias is bearish, the path of least resistance in the short-term may remain to the upside until further sellers commit, likely at the mentioned area of resistance.
