EUR/JPY has struggled near the 38.2% Fibonacci retracement level of the up-leg from 124.90 to 133.10, around the 130.00 level and over the last couple of hours edged higher, touching the 20-simple moving average (SMA) in the 4-hour chart. The positive movement is further supported by the RSI, which is moving north in the negative zone, while the MACD oscillator jumped above the trigger line, suggesting some gains.
If prices are able to continue to head higher the next immediate resistance for traders to watch is the 130.57 barrier, identified by the low on October 5. Even higher, the pair could meet the 40-SMA near 130.80 at the time of writing, while the next obstacle is coming from the 23.6% Fibonacci region of 131.17.
However, if the market manages to lose upside speed and turns lower again below the 38.2% Fibonacci, the price could move towards the 129.30 support, taken from the latest bottom on Tuesday. A break below this region could open the way towards the next immediate support – the 50.0% Fibonacci of 129.00.
Looking at the near-term picture, EUR/JPY has been trading within a short-term downtrend over the last two weeks after the price bounced off the 133.10 resistance level.
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