- EUR/JPY pares gains in the Asian session.
- Cross fell sharply from the high of 133.68 in the previous week.
- Momentum oscillator in overbought zone warns of aggressive bets.
EUR/JPY trades cautiously on Tuesday morning in the Asian trading hours. The cross constitutes a 20 pips movement with a negative bias.
As of writing, EUR/JPY trades at 131.26 with 0.09% losses on the day.
EUR/JPY daily chart
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On the daily chart, the EUR/JPY pair has fallen sharply in the previous week after consolidating in the range of 133.00-134.10.
If price sustains above the session’s high at 131.54, then it has the potential to reach the 131.85 horizontal resistance level followed by the high of May 12 at 132.47.
The Moving Average Convergence (MACD) indicator holds onto overbought trajectory with bearish momentum. Any uptick in the MACD would prompt EUR/JPY bulls to aim for May 14 high at 132.84.
Alternatively, if price moves lower, then it could first target the 130.95 horizontal support level. The cross would spot the next target at the 100-day Simple Moving Average (SMA) at 130.51.
A sustained move below the above mentioned 100-day SMA would prompt EUR bears to attract April 26 low at 130.21.
