EURJPY skyrocketed to a fresh more than eight-year high of 148.60 earlier today but quickly returned some of the gains. The aggressive advance above the 146.35 support added 1.6% to the pair but the technical oscillators are looking overbought at the moment. The RSI found a strong obstacle near the 70 level and is pointing slightly down, while the MACD is still extending its upside pressure above its trigger and zero lines.
Should the pair manage to strengthen its positive momentum and jump above its intraday high, the next resistance could come around 149.75, taken from the peak in December 2014. The psychological mark of 150.00 would also be a key level for traders to have in mind.
However, if prices are unable to break higher, the risk would shift to the downside for a potential bearish correction, with the 147.85 support coming first into focus. A drop lower would signal deeper declines until the 146.35 barrier and the 20-day simple moving average (SMA) at 145.80 ahead of the 145.55 line, taken from the inside swing highs on March 2.
All in all, EURJPY is strongly bullish in the short-to-medium-term timeframes and only a slip beneath the SMAs and the Ichimoku cloud may switch the outlook to neutral.
Forex trading and trading in other leveraged products involves a significant level of risk and is not suitable for all investors.
Recommended Content
Editors’ Picks
EUR/USD falls apart on Wednesday in post-election Greenback rush
EUR/USD plummeted during the midweek market session, falling over 1.75% into the red and tumbling back below 1.0750 for the first time since July. Markets have broadly pivoted into the Greenback following clear results from this week’s US presidential election that sees former President Donald Trump as the frontrunner.
USD/JPY: Prospects for extra gains remain on the table
USD/JPY cleared the 154.00 barrier in a convincing fashion, leaving behind the key 200-day SMA (151.60) and opening the door to potential extra gains in the short-term horizon.
Gold loses its shine as Trump's victory boosts US Dollar
Gold plunged to a three-week low below $2700 a troy ounce on Wednesday after the 2024 US Presidential election. The Republican candidate, former President Donald Trump, won the contest, bolstering the Greenback and US Treasury bond yields.
What's next for Bitcoin and Crypto industry following Trump's victory in US Presidential election
The 2024 US presidential election ended with pro-crypto advocates leading the House of Representatives, the Senate, and Donald Trump as the president-elect. The results stirred massive celebration across the crypto industry, with Bitcoin and the crypto market rallying following Trump's win.
Trump wins: Tax cuts come with a cost
Donald Trump’s victory will ensure a lower tax environment that should boost sentiment and spending in the near term. However, promised tariffs, immigration controls and higher borrowing costs will increasingly become headwinds through his presidential term.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.