EUR/JPY is pushing higher, following last Thursday’s hawkish European Central Bank (ECB) policy meeting. Benjamin Wong, strategist at DBS Bank, EUR/JPY to remain in a bullish run up towards 135.19, a major obstacle level.
Weekly chart’s support continues to anchor support at 129.88
“EUR/JPY now trades above the 200-day moving average (DMA) at 130.49 and the trendline resistance trailing from October 2021’s 133.48 peak (130.90). Further advances eye next the intermediate resistance linking up 134.13-133.48 at 132.99.”
“Support is generally rising as the cross assails its January 131.60 highs, and is now pinned at 129.88 (Tenkan support) from a weekly chart perspective.”
“Momentum is picking up, and EUR/JPY’s first obstacle rests with overhead resistance trailing back to February 2018’s 137.50 peak that axes with a 133.48 resistance. Beyond that, 134.42 (61.8% Fibonacci retracement of 149.78-109.57 (December 2014 peak to June 2016 lows)) comes into play. And just higher a 1.764% price extension at 135.19 – this remains a major obstacle level.”
