EUR/JPY may rise 90 - 135 pips

Our pivot point stands at 164.05.

Our preference

The upside prevails as long as 164.05 is support.

Alternative scenario

The downside breakout of 164.05 would call for 163.30 and 162.85.

Comment

The RSI is trading above 70. This could mean that either the pair is in a lasting uptrend or just overbought and that therefore a correction could shape (look for bearish divergence in this case). The MACD is above its signal line and positive. The configuration is positive. Moreover, the price is trading above both its 20 and 50 period moving average (respectively at 164.13 and 163.56).

Supports and resistances

166.88 **

166.44 *

165.99 **

165.54

164.64 last

164.34

164.05 **

163.30 *

162.85 **

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