EUR/JPY keeps the upside bias well in place and trades closer to the key 148.00 mark on Thursday.

Considering the ongoing price action, further gains in the cross remain in store for the time being. That said, the continuation of the upside momentum could extend further and challenge the 2022 peak at 148.40 (October 21) sooner rather than later.

Wall Street finished Tuesday’s session almost unchanged as market participants assessed comments from US Federal Reserve officials. Sentiment remains sour, though the CBOE Volatility Index (VIX) remains below 17, its lowest level since January 2022. Stock’s failure to rally on the VIX edging lower suggests investors could park cash aside amidst uncertainty regarding the Federal Funds rate (FFR) peak.

So far, further upside looks favoured while the cross trades above the 200-day SMA, today at 142.20.

The EUR/JPY remains upward biased, though on Monday printed a new YTD high at 147.45. The Relative Strength Index (RSI) remained in bullish territory and shifted flat, while the Rate of Change (RoC) is neutral. Hence, those two signals indicate that the EUR/JPY could remain sideways within the 146.72-147.50 area.

If EUR/JPY resumes its uptrend, its first resistance would be 147.45. A breach of the latter will expose the 147.75 area, followed by the 148.00 mark and the 2022 high at 148.40. On the other hand, the EUR/JPY first support would be the December 15 high turned support at 146.72. Once cleared, the cross-currency could tumble towards the December 20 high-shifted-support at 145.83 before testing the 20-day EMA At 145.09.

EURUSD long term bullish after minor bearish correction

Apr 20 2023