EUR/JPY has jumped considerably following the rebound on the two-month low of 126.60, hitting a new two-week high of 129.88 earlier today. The technical indicators are confirming the recent upside movement. The RSI is ready to jump into the overbought zone, while the MACD surpassed the trigger line in the bullish zone.
If prices are able to continue to move higher and overcome 50.0% Fibonacci retracement level of the down-leg from 133.10 to 126.60, around 129.86, the next resistance for traders to watch is the 130.20 barrier, identified by October 22. Even higher, the price could meet the 130.50 level, before being able to hit the 61.8% Fibonacci of 130.63.
Alternatively, if the market manages to turn to the downside again, this could open the way towards the 129.20 support level, which holds slightly above the 38.2% Fibonacci of 129.10. Moving lower, the market could decline further until the 40-simple moving average (SMA) of 128.68 in the 4-hour chart.
Zooming into the near-term picture, in the 4-hour chart, EUR/JPY has been trading within a short-term uptrend over the last couple of weeks, creating higher lows and higher highs.
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