EURJPY has been trading higher over the last couple of days, keeping its footing around the 130.00 level and above the short-term simple moving averages (SMAs). As regards the market momentum, some optimism seems to be building over an upside correction as the RSI has been pointing up above the 50 level and the MACD has entered the positive region.
In the event the bulls hold control, the 130.18 resistance will come first into view. A violation at this point may see another challenging battle around the 38.2% Fibonacci retracement level of the downward wave from 133.65 to 128.57 at 130.52, which stands near the descending line. If buyers claim that zone this time, the 131.07 level and the 50.0% Fibonacci at 131.10 could immediately add some downside pressure, deterring a continuation towards the 200-period SMA at 131.50.
Should the bears dominate, driving the price below the 23.6% Fibonacci of 129.78, the spotlight will shift to the crucial 129.15 barrier, where any step lower will put the pair in a bearish position again, meeting 128.57.
In brief, although EURJPY continues to face unfavorable trend signals, the odds for an upturn seem to be growing, with the confirmation expected to come above the 38.2% Fibonacci at 130.52 and the 200-period SMA at 131.50.
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