Bulls watch 133.65
- EUR / JPY consolidates gains during Asian session.
- Cross has been in a continuous uptrend since April.
- The Momentum Oscillator in the overbought zone warns against aggressive bets.
The EUR / JPY price trades cautiously on Thursday morning during Asian trading hours. The cross currency pair is moving in a very narrow trading band.
At the time of writing, EUR / JPY is trading at 133.51 with gains of 0.02% on the day.
EUR / JPY daily chart
On the daily chart, the EUR / JPY pair is trading in an upward monthly trend from the end of April.
For example, the following previous analysis, EUR / JPY Price Analysis: Bulls Look for a Breakout of the 21-D EMA, had designated the 61.8% Fibo confluence and the M formation neckline near of 133.65 as the target for bulls as follows:
Meanwhile, EUR / JPY is facing rejection near the 134.00 mark and consolidating in a wider trading range of 133.00 to 134.15.
If price holds above the session high at 133.56, it has the potential to hit the June 4 high at 133.81 followed by the June 2 high at 134.07.
The Moving Average Convergence Indicator (MACD) maintains an overbought path with bearish momentum. Any rise in the MACD would encourage EUR / JPY buyers to aim for levels last seen in 2017. The pair would hit the November 2017 high at 134.15.
Alternatively, if the price drops, it could first target the 20-day Simple Moving Average (SMA) at 133.06. This would mark the breaking of the 20-day SMA. The cross would spot the next target at the 23.6% Fibonacci retracement, which stretches from the lows of 129.59, to 132.92.
Price action would encourage euro bears to draw the May 24 low at 132.52.