- Up after 50-day SMA prevents decline
- It jumps back into its bullish channel in force since June
- Momentum indicators turn positive
The EURJPY had been falling in the short term, following its rejection at 161.85 in late January. However, the pair managed to quickly recover most of its losses after the 50-day simple moving average (SMA) halted its decline and re-entered its medium-term bullish channel.
Since both the RSI and MACD are within their positive zones, the price may reach the January high of 161.85 again. If that barricade fails, attention could turn to November resistance at 163.70. A break above that area could pave the way towards the 15-year high of 164.28.
Alternatively, if the bounce falters and the pair falls back below its upward-sloping channel, February support at 158.06 could act as the first line of defense. Then further declines could stop at the January low of 155.05, before the October support of 154.34. Even lower, the December low of 153.13 could provide downside protection.
In summary, EURJPY has been on track to erase the recent pullback after finding its footing at the 158.06 mark. Therefore, a break above the recent 161.85 rejection region could put the multi-year highs recorded in 2023 under scrutiny.