• EURJPY in the green for the seventh consecutive trading day

• Bulls aim for April’s multi-year highs, but they might run out of steam soon

For the past week, EURJPY has been experiencing a non-stop upward movement, currently targeting April’s bar of 169.27, which proved tough to claim despite the flash spike to a 40-year high of 171.56.

Having jumped back above January’s upward-sloping channel, the pair might retain buying interest in the coming sessions. The technical indicators confirm this narrative as the RSI continues to trend up and is still below the overbought level of 70. Yet, with the stochastic oscillator looking for a bearish turn above its 80 overbought level, the market might struggle to repeat its recent success.

Surpassing the 170.00 level decisively could pave the way for reaching the 40-year high of 171.56 or establishing a new higher high within the 172.25-172.70 trendline area. Beyond the latter, the rally might expand towards the 175.00 round level or up to the 161.8% Fibonacci extension of the previous downleg at 176.23.

On the downside, a step below the 167.25-167.95 area, where the 23.6% Fibonacci retracement of the November-April upleg is placed, could initially halt near the 20-day simple moving average (SMA) at 166.45. If selling forces persist, the price might retest the 50-day SMA and the lower boundary of the bullish formation within the 164.00-164.60 region. Note that the 38.2% Fibonacci number is in the neighborhood. Hence, failure to pivot there could cause a sharper decline towards the 50% Fibonacci of 162.35.