- EUR/JPY consolidates gains in the Asian session.
- Cross is in a continuous uptrend since April.
- Momentum oscillator in overbought zone warns of aggressive bets.
The EUR/JPY price trades cautiously on Thursday morning in the Asian trading hours. The cross-currency pair moves in a very narrow trade band.
As of writing, EUR/JPY trades at 133.51 with 0.02% gains on the day.
EUR/JPY daily chart
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On the daily chart, the EUR/JPY pair has been trading in a monthly upward trend beginning in late April.
For instance, the following prior analysis, EUR/JPY Price Analysis: Bulls seek break of 21-D EMA, had earmarked the confluence of the 61.8% Fibo and the neckline of the M-formation near 133.65 as a target for the bulls as follows:
Meanwhile, EUR/JPY faces rejection near the 134.00 mark and consolidates in a broader trading range of 133.00-134.15.
If the price sustains above the session’s high at 133.56, then it has the potential to reach the June 4 high at 133.81 followed by the June 2 high at 134.07.
The Moving Average Convergence (MACD) indicator holds onto an overbought trajectory with bearish momentum. Any uptick in the MACD would prompt EUR/JPY bulls to aim for the levels last seen in 2017. The pair would seek November 2017 high at 134.15.
Alternatively, if the price moves lower, then it could first target the 20-day Simple Moving Average (SMA) at 133.06. It would mark the breach of the 20-day SMA. The cross would spot the next target at the 23.6% Fibonacci retracement, which extends from the lows of 129.59, at 132.92.
The price action would encourage EUR bears to attract the May 24 low at 132.52.
EUR/JPY additional levels
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