EUR/JPY Price Analysis: Dribbles around five-week top with eyes on 140.00
|- EUR/JPY struggles to extend five-day uptrend as bulls flirt with lat April tops.
- Bullish MACD, firmer RSI portray upside momentum towards the yearly high.
- Three-month-long support line appears the key for bears, 61.8% FE lures buyers.
EUR/JPY pares intraday gains around multi-day high, easing to 138.50 of late, as bulls take a breather during early Thursday morning in Europe.
Despite the cross-currency pair’s failure to extend the four-day uptrend, the quote’s trading beyond the 136.30 support confluence, including the 50-DMA and 23.6% Fibonacci retracement (Fibo.) of March-April upside favor bulls.
Also keeping EUR/JPY buyers are the bullish MACD signals and firmer RSI (14), not overbought.
That said, the yearly high marked in April, around 140.00, appears immediate target for the pair buyers.
However, the RSI conditions may turn overbought around the stated psychological magnet and could trigger a consolidation, failing to do so may propel the EUR/JPY prices towards 61.8% Fibonacci Expansion (FE) of March-May moves, near 142.40.
Alternatively, the pair’s weakness past 136.30 support confluence isn’t an open invitation to the bears as an upward sloping trend line from early March, near 135.80, could also challenge the EUR/JPY downside.
In a case where the pair decline below 135.80, the odds favoring its slump to May’s low near 132.65 can’t be ruled out.
EUR/JPY: Daily chart
Trend: Further upside expected
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