Forex world

December 13, 2022

EUR/JPY bulls cheer break of 144.70 hurdle

- EUR/JPY stays mildly bid at the highest levels since November 23.

- Clear break of 50-DMA, seven-week-old descending trend line join bullish MACD signals to favor buyers.

- Sellers need to conquer four-month-old support line to retake control.

EUR/JPY remains sidelined above 145.00 after refreshing the three-week top during early Tuesday, near 145.20 by the press time.

The cross-currency pair rose to a fresh multi-day high after crossing the 144.70 resistance confluence, now support, which comprises 50-DMA and a downward-sloping trend line from October 13.

The resistance breakout also gains support from the bullish MACD signals to direct the EUR/JPY buyers towards September’s high near 145.65. However, the late November swing highs near 146.15 could challenge the pair’s further upside.

That said, multiple hurdles around 147.20 and 147.80 also challenge the EUR/JPY pair’s further advances ahead of highlighting the yearly peak of 148.40 marked in October.

In a case where the quote remains firmer past 148.40, the odds of witnessing the 150.00 round figure on the chart can’t be ruled out.

Meanwhile, pullback moves remain elusive unless the EUR/JPY pair stays beyond 144.40 resistance-turned-support.

Following that, a downward trajectory towards the 38.2% Fibonacci retracement level of the August-October upside, near 142.70, can’t be ruled out.

However, an ascending trend line from early August, close to 142.00, appears crucial for the EUR/JPY bears to break before taking control.

Trend: Further upside expected

EUR/JPY: Daily chart

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