EURJPY bounces back, yet gains are limited by the 50-day Simple Moving Average (SMA).
- EURJPY re-enters recent range after a minor slump
- Held down by 50-day SMA and Ichimoku cloud
- Momentum indicators suggest a neutral-to-negative tone
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 its recent spike to the downside got erased within a few sessions.
Should sellers regain the upper hand, the pair could test the recent support region of 156.56. A break below that zone could pave the way for the October low of 154.34. Failing to halt there, the price may then descend towards the July support of 153.31.
Alternatively, if the price conquers the congested region that includes the 50-day simple moving average (SMA) and the upper end of the Ichimoku cloud, the bulls could attempt to reclaim the recent resistance of 158.46. Violating that zone, the pair could revisit its 15-year peak of 159.75. Surpassing that hurdle, the price could storm to fresh multi-year highs, where the February 2008 peak of 161.38 may curb further advances.
In brief, EURJPY has been trading in a range during the past month, appearing to be lacking directional impetus.