EUR/JPY Price Analysis: Refreshes multi-month top around mid-132.00s
- EUR/JPY takes the bids to fresh high in 32 months.
- Upbeat MACD, sustained trading beyond 200-SMA favor buyers.
- Rising wedge resistance, September 2018 top test upside momentum.
EUR/JPY rises to a fresh high since September 2018 while picking up the bids near 132.55, up 0.10% intraday, during early Thursday.
Although bullish MACD and the pair’s ability to stay firm beyond 200-SMA keep EUR/JPY buyers hopeful, a rising wedge bearish formation on the four-hour (4H) chart joins RSI’s run-up towards the overbought territory to challenges the upside.
Hence, the pair’s moves between 132.60 and 131.90, comprising the stated wedge’s extremes, seem less important. Also acting as the upside barriers are highest marked in September and April months of 2018, respectively around 133.15 and 133.50.
Meanwhile, a downside break of 131.90 will have to conquer the 200-SMA level close to 130.75 before directing EUR/JPY bears toward the theoretical target near 129.00.
During the fall, the monthly low near 131.00 and late April bottom close to 129.60 may act as intermediate halts.
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.
