EUR/JPY may rise 97 - 142 pips

Our pivot point stands at 163.97.

Our preference

The upside prevails as long as 163.97 is support.

Alternative scenario

The downside breakout of 163.97 would call for 163.22 and 162.77.

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 trading above both its 20 and 50 period moving average (respectively at 164.19 and 163.58).

Supports and resistances

166.90 **

166.46 *

166.01 **

165.56

164.59 last

164.27

163.97 **

163.22 *

162.77 **

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