EUR/JPY Price Analysis: Bulls run out of fuel within 15-week-old rising channel, ECB Forum eyed
- EUR/JPY regains upside momentum around the highest levels since September 2008, ECB President Christine Lagarde speech eyed.
- Rising trend channel since early March sustained trading below immediate DMA lures buyers.
- Pullback remains elusive until the quote breaks 151.00 support confluence.
- Overbought RSI conditions may trigger pullback from 157.40 hurdle, if not then 160.00 will be in the spotlight.
EUR/JPY remains on the front foot as it pares the two-day losses at the highest levels since September 2008 heading into Tuesday’s European session. In doing so, the cross-currency pair grinds higher within a rising trend channel established since early March.
That said, the quote prints mild gains around 156.85 by the press time, printing the first daily gains in three, as traders brace for the key speeches from European Central Bank (ECB) Forum, including from President Christine Lagarde.
Hence, the bullish trend channel and hawkish comments from ECB policymaker Matin Kazaks join the broad Euro run-up to favor the pair buyers. However, the overbought RSI (14) line challenges the quote’s further upside as it prods the stated channel’s top line, close to 157.50 by the press time.
If at all the EUR/JPY bulls manage to keep the reins past 157.50, the odds of witnessing a rally toward the 160.00 round figure can’t be ruled out.
On the contrary, pullback moves need validation from the 5-DMA support of 156.55, a break of which can drag the quote to the 154.00 threshold.
However, a convergence of the previously stated bullish channel’s bottom line and a two-month-old horizontal support zone, around 151.00, quickly followed by the 150.00 psychological magnet, will challenge the EUR/JPY bears past 154.00.
Overall, EUR/JPY remains on the bull’s radar ahead of a speech from ECB’s Lagarde even as the upside room appears limited.
EUR/JPY: Daily chart
Trend: Limited upside expected