Will EUR/JPY re-test the 16-year high soon? [Video]

• EURJPY rebounds off 163.30, holding above rising trend line.

• Bullish bias in longer-term timeframes.

• But MACD and RSI loses momentum in near term.

EURJPY found support at the 163.30 barrier and is moving again towards the 16-year high of 165.36 that was recorded on March 20.

The pair has been remaining in an upward tendency since December 7, but the technical oscillators are indicating weakening bias. The RSI is flattening above the neutral threshold of 50, while the MACD is losing some steam above its trigger and zero lines.

In the wake of negative pressures, the market could meet immediate support at 163.30 before it heads lower to the 20-day simple moving average (SMA) at 162.73. A successful move below this level could see a retest of the previous low of 161.90, which overlaps with the 50-day SMA and the short-term uptrend line. In case of steeper declines, the pair could breach this trough, diving to 160.25, which used to provide support on March 11.

On the flip side, a move to the upside could see immediate resistance at the multi-year high of 165.36 before travelling towards the July 2007 peak at 169.00, but traders should also be cautious near the psychological level of 166.00, 167.00 and 168.00 first.

Turning to the long and medium-term pictures, the market seems to be in a strong bullish mode. Zooming into the near-term outlook a neutral outlook could be placed only if there is break of the 200-day SMA at 159.10.