EUR/JPY Price Analysis: Buyers battle immediate hurdle towards 130.00
- EUR/JPY eases from intraday high, posts heaviest gains in two weeks.
- Descending trend line from February 25 probes bulls targeting fresh high since November 2018.
- One-month-old support line, 200-bar SMA raise bars for bears’ entry.
- Upbeat MACD, sustained trading above key trend line, SMA favor bulls.
EUR/JPY bulls catch a breather around 129.40, up 0.30% intraday, during early Tuesday. In doing so, the quote rallies the most since February 24 while defying the previous two-day losing streak.
However, the bulls need validation from a downward sloping trend line from February 25, currently around 129.50, to keep the pair directed towards the yearly top near the 130.00 threshold.
While the EUR/JPY run-up beyond an ascending support line from early February joins the recently upbeat MACD signals to keep buyers hopeful, the pair’s rally past-130.00 needs to cross the November 2018 peak surrounding 130.15-20 to keep the reins.
On the flip side, pullback moves may eye for the stated support line near 128.75, a break of which will direct EUR/JPY sellers to a 200-bar SMA level of 127.53.
Also acting as the downside barrier below around key SMA is January’s top of 127.50.
EUR/JPY four-hour chart
Trend: Pullback expected
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
