Technical signals improve but major resistance intact
EURJPY sped up to the 159.00 area on Tuesday after the Bank of Japan (BoJ) kept its yield curve control at 1.0%, but softened its language to allow any breaches above that threshold, disappointing those who expected a higher bar at 1.25-1.50%.
The pair is currently flirting with August’s 15-year high of 159.75, which cooled last week’s bullish actions, but a bigger challenge could occur within the 160.85-161.65 trendline region. A move higher could immediately reach the 163.00 barrier, while a more aggressive rally could cease near the 165.00 round level, both last seen in 2008.
In technical indicators, the RSI and the stochastic oscillator have rotated higher, endorsing the bullish momentum in the price. A pullback below the 20- and 50-day simple moving averages (SMAs) at 157.95 could be enough to bring the bears back into play, shifting the spotlight to October’s base of 155.80. If selling pressure intensifies there, the door will open for the 23.6% Fibonacci retracement mark of the previous uptrend at 154.50 and then for the 153.00 mark.
Overall, EURJPY keeps fluctuating within a neutral zone. Despite the improving technical signals, the pair needs to advance above 161.65 to upgrade the outlook to bullish.
EURJPY gains strong momentum; recoups previous losses
Technical signals improve but major resistance intact
EURJPY sped up to the 159.00 area on Tuesday after the Bank of Japan (BoJ) kept its yield curve control at 1.0%, but softened its language to allow any breaches above that threshold, disappointing those who expected a higher bar at 1.25-1.50%.
The pair is currently flirting with August’s 15-year high of 159.75, which cooled last week’s bullish actions, but a bigger challenge could occur within the 160.85-161.65 trendline region. A move higher could immediately reach the 163.00 barrier, while a more aggressive rally could cease near the 165.00 round level, both last seen in 2008.
In technical indicators, the RSI and the stochastic oscillator have rotated higher, endorsing the bullish momentum in the price. A pullback below the 20- and 50-day simple moving averages (SMAs) at 157.95 could be enough to bring the bears back into play, shifting the spotlight to October’s base of 155.80. If selling pressure intensifies there, the door will open for the 23.6% Fibonacci retracement mark of the previous uptrend at 154.50 and then for the 153.00 mark.
Overall, EURJPY keeps fluctuating within a neutral zone. Despite the improving technical signals, the pair needs to advance above 161.65 to upgrade the outlook to bullish.
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