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EUR/JPY continues to eye upper end of range near 133.00

The EUR/JPY is drifting higher in Asia trade, up 38 pips at 132.15 and continuing to drift towards the upper end of the recent trading range just below the 133.00 level.

According to Val Bednarik of FXStreet.com, the EUR/JPY traded range bound after the initial rush of adrenaline, finding short term support in its hourly 200 SMA currently around 131.60. Having been unable to fill the opening gap around 132.45, technical readings in the mentioned time frame turned neutral, as indicators hover around their midlines while price stands around a flat 100 SMA, giving not much clues on next direction. Yen may be stronger, but investors seem not ready to buy it, still wary of the strong yen bearish momentum seen over the past months. Risk of a stronger slide however, increases on a break below 131.00/10 area, with scope then to test major support around 128.80 over the upcoming sessions.”


From a longer term technical perspective, the pair continues to exhibit constructive developments on the daily chart with price still sitting above both short term moving averages (9 and 20), as well as the RSI continuing to consolidate above 60. Furthermore, the EUR/JPY is still under the bullish influence of the ‘pennant’ pattern break out which was confirmed on May 8th, and has measured move targets up as high as 135.80. All three of these developments could continue to help declines remain limited in the coming week.

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