The EUR/JPY Pair Is Expected Limited Upside Movement
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- EUR/JPY buyers keep the reins at five-week high despite recent struggle to overcome 100-DMA.
- Bullish MACD signals, sustained rebound from multi-day-old horizontal support keeps buyers hopeful.
- Convergence of previous support line from March, descending resistance line from late October appears crucial resistance.
EUR/JPY grinds higher past 142.00 as bulls struggle to cross the 100-DMA heading into Monday’s European session. In doing so, the cross-currency pair justifies the bullish MACD signals, as well as a clear bounce off a horizontal support line, stretched from late September 2022, to lure the pair buyers.
However, the 100-DMA challenges the EUR/JPY upside around the 143.00 threshold.
In the case where the EUR/JPY prices remain firmer past 143.00, a convergence of an 11-month-old previous support line and a downward-sloping resistance line from late October 2022, around 145.00, could challenge the pair’s further upside.
It’s worth noting that the EUR/JPY run-up beyond 145.00 won’t hesitate to challenge the late 2022 peak surrounding 148.40 while aiming for the 150.00 psychological magnet.
On the flip side, pullback moves may initially aim for the 140.00 round figure before testing the 38.2% Fibonacci retracement of the pair’s March-October 2022 upside, near 139.23.
Following that, the aforementioned horizontal support line comprising lows marked since late September 2022, near 137.35-30, will be in focus.
Even if the EUR/JPY bears conquer the 137.30 support, the 61.8% Fibonacci retracement level near 133.55 can act as the last defense of the buyers.
EUR/JPY: Daily chart
Trend: Limited upside expected
