EURJPY has reversed back up again after finding support at the 134.10 barrier during yesterday’s trading session. The pair has been developing higher along its current trend line since August 18. Additionally, over the last hours, prices broke above the 135.00 handle and are trading above the short-term moving averages.
The pair is recording a sharp upside movement and the short-term momentum indicators are pointing to a bullish bias. The Relative Strength index (RSI) entered the positive territory and is strengthening its momentum, whilst the MACD oscillator is moving higher in the bearish area above its trigger line.
On the upside, if prices continue the bullish rally, there is scope to test the 136.30 resistance level. Clearing this key level could see additional gains towards the 136.60 obstacle, taken from the high on January 05.
If prices reverse lower, immediate support should come at 23.6% Fibonacci retracement level at 134.40 with the low of 127.45 and the high of 136.60. Below that, the 134.10 is another major support around 134.10, which is holding slightly above the ascending trend line.