EUR/JPY Price Analysis: Jumps to highest since 2008 above 158.00, further upside appears impulsive
- EUR/JPY marches to the highest level since September 2008.
- Clear upside break of five-week-old falling resistance, absence of overbought RSI and bullish MACD signal together favor bulls.
- Ascending trend line from March, 21-DMA restrict short-term downside.
EUR/JPY refreshes multi-year high to 158.30 heading into Thursday’s European session after crossing the key upside hurdle earlier in the day. That said, the cross-currency pair’s run-up in the last four consecutive days also takes clues from the firmer MACD signals, as well as the upbeat but not overbought RSI (14) line.
With this, the quote is well set for reaching the 159.00 round figure ahead of poking the 160.00 psychological magnet.
However, the RSI may turn overbought around those levels and can challenge the EUR/JPY buyers.
Apart from that, the February 2007 peak of around 159.65 also acts as an extra filter towards the north.
Meanwhile, EUR/JPY pullback needs to provide a daily closing beneath the previous resistance line stretched from late June, close to 157.80 by the press time.
Following that, an ascending support line from late March, close to 156.60, and the 21-DMA level of 156.30 may prod the EUR/JPY bears.
Above all, the pair remains on the buyer’s radar unless breaking a three-month-old horizontal support zone surrounding 151.70-40.
To sum up, EUR/JPY pair's upside break of 157.70 opened the door for the pair's rally towards 160.00 but the futher advances appear doubtful.
EUR/JPY: Daily chart
Trend: Further upside 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.
