EURJPY Struggles To Rekindle Ascent Past 1½-Year Peak

EURJPY is colliding with the upper boundary of the range at 127.06, finding it difficult to revive the hike. The rising 100- and 200-day simple moving averages (SMAs) and the forthcoming bullish crossover between the 50- and 100-day SMAs are protecting the improving structure. However, the bullish Ichimoku lines and the MACD are reflecting the recent stalling in the climb.

Overall, momentum in the short-term oscillators appears to be skewed to the upside. The MACD, some distance above zero, although below its red trigger line, is looking set to return above it, while the RSI is creeping towards the 70 mark. Furthermore, additional price advancements are being sponsored by the bullish charge in the stochastic oscillator.

If buyers manage to clearly step above the limiting roof of 126.80-127.06, early constraints to the ascent may arise from the tough 127.49 resistance from March 2019. Should the hike accelerate, the bulls may aim for the 128.32 level, which is the 176.4% Fibonacci extension of the down leg from 124.42 until 119.30. Clawing in more ground, buyers may reach the critical 129.24 peak from December 2018. Conquering this too, the pair may then challenge the region of highs of 130.19-130.50 from October 2018.

On the flipside, if progress is capped, sellers may face initial support from the red Tenkan-sen line at 126.36 ahead of the region of lows of 125.70-126.04. Dipping from here, the next obstacle could emerge at the 125.00-125.25 support belt, where the blue Kijun-sen line also lies. Sinking deeper, the nearing bullish overlap between the 50- and 100-day SMAs around 124.68 could make attempts to rescue the positive picture. Yet, if sellers maintain control, the pullback may target the cloud and the 123.89 border.

In conclusion, the short-term timeframe sustains a neutral-to-bullish bias above the SMAs and the 125.70-126.04 barrier. Furthermore, a completed bullish crossover in the SMAs could boost price appreciation.