EUR/JPY has been trading upwards for 2 weeks in a row after having reached its next lows. The weakening of the US dollar helped the European currency grow and claw back a part of losses through cross-rates. But the current growth may be a mere correction. Bulls may be hard-pressed to hold above 132.00 in the nearest future, but they will attempt to. Technical indicators are indicating that the pair is currently overbought, but only Stochastic is giving a reversal signal as its lines have crossed one another and are directed downwards. The pair is currently trading a bit above 38.2% Fibonacci retracement level. If the pair manages to consolidate above, bulls will reach their goal easier.
Support and resistance
The following levels serve as resistance: 131.40, 131.95, 132.30, and 133.00. The key resistance level is at 131.95.
The following levels serve as support: 130.65, 130.00, and 129.25.
Open short positions from a level of 131.95 and below 130.50. Buy after the price consolidates above a level of 132.00. It would be also wise to place Buy Limit orders at 126.90.