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EUR/JPY testing critical 138.00 resistance

FXStreet (Bali) - EUR/JPY is trading at a key resistance level around 138.00, with the initial moves out ok Tokyo seeing some Yen demand, but not enough to move the rate other than just some marginal distance.

According to Valeria Bednarik, Chief Analyst at FXStreet: "The pair has corrected its overbought readings in the short term according to the hourly chart, now regaining the upside after finding buyers in the 137.60 price zone. In the 4 hours chart indicators lost upward strength but remain steady near overbought territory, with no signs of downward potential at the time being. The critical resistance in case of further advances stands at 138.40 as the pair stalled around or a few pips below it several times over the past few weeks, suggesting stops accumulate above it."

"Such recovery should lead to a more sustainable advance in time, opening doors for an approach to the 140.00 figure. Lose of 130.00 on the other hand should deny such possibility and see the pair attempting a rates of the base of its latest range around 136.00", Valeria added.

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