- EUR/JPY stays sidelined, seesaws around 21-DMA, seven-week-old resistance line of late.
- Bullish MACD keeps buyers hopeful but candlestick formation trouble traders.
- Sustained trading beyond 200-DMA keeps buyers hopeful, late June lows also challenge bulls.
EUR/JPY takes round to 130.10-15 during Monday’s Asian session. In doing so, the cross-currency pair portrays a three-day sideways grind, also marking the Doji candlestick formation, to highlight the trader’s indecision.
However, clear trading beyond 200-DMA and bullish MACD keeps the pair buyers hopeful.
Hence, a daily sustained run-up beyond the latest high near 130.55 becomes necessary for the short-term EUR/JPY buyers but late June’s low near 131.10 should validate the actual run-up.
Following that, the previous month’s top near 132.45 should gain the market’s attention.
Alternatively, the 130.00 round figure and 129.60 should test intraday sellers before challenging them with the 200-DMA level of 128.70.
In a case where EUR/JPY sellers conquer the key moving average, March’s low near 128.30 will be in focus.
EUR/JPY: Daily chart