- EURJPY rises above key resistance, but more remain
- Technical signals show improvement
EURJPY has been in a range between its 20- and 200-day simple moving averages (SMAs) over the past month, currently pushing for a close above the former at 156.45 after failing twice to overcome it in December.
The technical indicators are sending some encouraging signals. The RSI keeps trending up, and the MACD has risen above its red signal line. Moreover, the stochastic oscillator is ready to start its next positive cycle after hitting oversold levels, endorsing the bullish momentum in the price.
Still, there are some key barriers which could ruin recovery attempts. The 23.6% Fibonacci retracement of the January-November 2023 uptrend is nearby at 157.93, while the support-turned-resistance line from July at 158.60 could be another hurdle along with the 50-day SMA at 159.30. A successful penetration through the familiar 159.75 barrier is expected to boost the pair towards the 161.60 constraining zone.
In the bearish scenario, a pullback below the 20-day SMA could see another test near the 200-day SMA at 155.20. If the latter cracks, the decline could extend towards the 38.2% Fibonacci of 154.00 and then down to the important ascending line from March 2022 near 153.00. Even lower, the price might revisit the 50% Fibonacci of 150.83.
In a nutshell, EURJPY could recoup some lost ground in the coming sessions, though stronger efforts will be needed for a meaningful rally above 159.75.
