EUR/JPY chart - Trading View
EUR/JPY was trading 0.08% higher on the day at 130.98 at around 05:00 GMT, slightly lower from session highs at 131.10.
The pair hovers around 50% Fib retracement mark with scope for further upside amid weaker yen.
The Japanese currency under pressure amid surging energy prices as Japan is a net energy importer and spiking energy prices weigh on consumption.
Technical Analysis:
- EUR/JPY has shown a decisive break above daily cloud and Channel top.
- Momentum studies are bullish, Stochs and RSI are sharply higher
- Volatility is high as evidenced by widening Bollinger bands
- Price action is above major moving averages which are trending higher
Support levels - 130.50 (channel top), 130.29 (38.2% Fib), 130.12 (200-week MA)
Resistance levels - 131.02 (50% Fib), 131.75 (61.8% Fib), 132
Summary: EUR/JPY is poised for further gains. Scope for test of 61.8% Fib at 131.75. Bullish invalidation on retrace below daily cloud.
