February 8, 2023

Bullish while above 130.20, next resistance at 131.00

  • Euro rises to seven-week highs versus Japanese yen on the last day of 2021.
  • Short-term bias points to the upside in EUR/JPY.
  • Next resistance located around 131.00, horizontal level and upper limit of the channel.

The EUR/JPY is rising on Friday, confirming the break of the 20-week moving average. The next level to watch in the weekly chart could be seen at 131.50, with a close above opening the doors to more gains.

The bias is to the upside in the short term as it moves within an upward channel. The upside limit is seen slightly above 131.00. The mentioned level is also a horizontal support; the euro could likely make a stop in there and a pullback.

The bullish tone will remain intact as long as it holds above the 21-SMA in the four hours chart and the lower limit of the channel, both levels around 131.25. A slide below should point to weakness ahead with the next support at 129.75.

More gains are likely if EUR/JPY breaks and holds above 131.00. The next critical resistance stands at 131.60.

EUR/JPY 4-hour chart



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