EURJPY Price Analysis: Golden Cross strengthens euro bulls, 147.70 a critical resistance
- The cross is struggling to cross the 147.00 hurdle in the Asian session.
- An oscillation in the bullish range by the RSI (14) indicates that upside momentum is active.
- A golden cross, represented by the 50-and 200-EMAs at 145.90 indicates a bullish trend reversal.
The EURJPY pair is struggling to overstep the round-level resistance of 147.00 in the early Tokyo session. The asset has been advancing continuously for the past three trading sessions after sensing buying interest around 144.23.
Overall optimism in the risk sentiment is keeping the Shared Currency bulls in power. Apart from that, the sneaking intervention approach by the Bank of Japan (BOJ) in the currency market is failing to prevent the Japanese yen from further depreciation.
On an hourly scale, the cross has extended its recovery after overstepping the crucial resistance of 146.00. Going forward, a horizontal resistance placed from October 25 high at 147.73 will remain a key hurdle.
A golden cross, represented by the 50-and 200-period Exponential Moving Averages (EMAs) at 145.90, has underpinned the Eur bulls.
Meanwhile, the Relative Strength Index (RSI) (14) is oscillating in a bullish range of 60.00-80.00, which indicates the continuation of upside momentum.
Should the asset break above October 25 high at 147.73, the shared currency bulls will send the asset toward October 21 high at 148.40, followed by the psychological resistance at 150.00.
On the flip side, the cross will be dragged to near October 13 and October 10 lows at 141.76 and 140.90 respectively if it drops below Thursday’s low at 144.00.
EURJPY hourly chart
-638034611211000373.png)
Author
Sagar Dua
FXStreet
Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.
