FXStreet (Barcelona) – FXStreet Editor and Analyst, Dhwani Mehta, sees EUR/JPY technicals being supportive of a move higher towards 140.50 and even 142.70, but below 137.00 will see the bullish momentum subsiding.
Key Quotes
“On the daily chart, EUR/JPY gave an inverted head and shoulders bullish break out on Tuesday and remains supported well above 138 barrier. The cross also pierced through the 200-DMA located at 137 levels and spiked nearly 200 pips thereon.”
“At the moment, EUR/JPY trades above all the major moving averages with the daily RSI hovering around 72 in the overbought zone. Hence, moving averages and technical indicator point to further upside in the making with the pair expected to test 140.50 levels ahead of Friday’s NFP figures from the US. A break above the last, EUR/JPY may rally to 142.70 levels.”
“However, 200-DMA resistance-turned support and the inverted head and shoulders neckline at 137 levels will acts as a crucial support below which the short term bullish momentum wanes.”
(Market News Provided by FXstreet)