EUR/JPY may rise to 177.45 - 179.38

Our pivot point is at 170.58.

Our preference

The upside prevails as long as 170.58 is support.

Alternative scenario

The downside breakout of 170.58 would call for 167.35 and 165.43.

Comment

The RSI is above 70. It could mean either that the pair is in a lasting uptrend or just overbought and therefore bound to correct (look for bearish divergence in this case). The MACD is positive and above its signal line. The configuration is positive. Moreover, the price is above its 20 and 50 period moving average (respectively at 170.29 and 168.26). Finally, the EUR/JPY has crossed above its upper Bollinger band (173.11).

Supports and resistances

183.23 **

181.30 *

179.38 **

177.45

173.24 last

171.85

170.58 **

167.35 *

165.43 **

Number of asterisks represents the strength of support and resistance levels.