EURJPY continues its lateral movement just under a 15-year high.
- EURJPY stuck in a tight range during September
- Hovers a tad below 15-year peaks supported by 50-day SMA
- Momentum indicators are tilted slightly to the bullish side
EURJPY has been in a prolonged uptrend since the beginning of the year, posting a fresh 15-year peak of 159.75 on August 31. Since then, the price has been trading without a clear direction around the 158.00 handle, while the short-term oscillators are reflecting a neutral-to-positive near-term bias.
If buying interest intensifies, the bulls might attempt to re-test the recent 15-year high of 159.75. Jumping above that zone, the pair could storm to fresh multi-year highs, where the February 2008 peak of 161.38 may curb further advances. Failing to halt there, the price could then ascend to challenge the April 2008 high of 164.97.
On the flipside, should the pair violate the 50-day simple moving average (SMA), immediate support could be found at 157.04, which held strong twice in September. A break below that zone could trigger a retreat towards 153.31. Even lower, the July bottom of 151.39 may prove to be a tough hurdle for the bears to overcome.
In brief, EURJPY has been trading in a range during the past month, appearing to be lacking directional impetus. Will the period of low volatility be followed by a spike?