Technical Analysis – EURJPY storms to fresh 14½-year high
May 3, 2023 8:28 am
EURJPY has been in a steep uptrend since early April, generating a structure of consecutive multi-year highs. In the previous daily session, the pair posted a fresh 14½-year peak of 151.60 before paring some gains.
The momentum indicators currently suggest that a downside correction may be on the cards. Specifically, both the RSI and the stochastic oscillator declined below their overbought territories, hinting that the recent rally had been overstretched.
To the downside, bearish actions could send the price to test the October 2022 high of 148.39, which could act as support in the future. If that barricade fails, the bears could aim for 146.28 before the 145.56 hurdle gets tested. Even lower, the 142.54 support region, which overlaps with the 200-day simple moving average (SMA), may curb further declines.
On the flipside, if bullish pressures persist, the March 2008 low of 151.70 could serve as initial resistance. Piercing through that zone, the pair could ascend towards the August 2007 support of 153.35. A violation of that territory could set the stage for the February 2008 low of 154.05.
Overall, EURJPY has staged a massive rally posting consecutive higher highs. Nevertheless, short-term oscillators are indicating some weakness in the price action, opening the door for a moderate pullback.
EURJPY has been in a steep uptrend since early April, generating a structure of consecutive multi-year highs. In the previous daily session, the pair posted a fresh 14½-year peak of 151.60 before paring some gains.
The momentum indicators currently suggest that a downside correction may be on the cards. Specifically, both the RSI and the stochastic oscillator declined below their overbought territories, hinting that the recent rally had been overstretched.
To the downside, bearish actions could send the price to test the October 2022 high of 148.39, which could act as support in the future. If that barricade fails, the bears could aim for 146.28 before the 145.56 hurdle gets tested. Even lower, the 142.54 support region, which overlaps with the 200-day simple moving average (SMA), may curb further declines.
On the flipside, if bullish pressures persist, the March 2008 low of 151.70 could serve as initial resistance. Piercing through that zone, the pair could ascend towards the August 2007 support of 153.35. A violation of that territory could set the stage for the February 2008 low of 154.05.
Overall, EURJPY has staged a massive rally posting consecutive higher highs. Nevertheless, short-term oscillators are indicating some weakness in the price action, opening the door for a moderate pullback.
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