EUR/JPY Rebound Emerges Following Test of Former Resistance

EUR/JPY approaches the July high (158.05) after testing the former-resistance zone around the May high (151.62).

EUR/JPY Rate Outlook

EUR/JPY stage a three-day rally as it extends the series of higher highs and lows from the July low (151.42), and the exchange rate may track the positive slope in the 50-Day SMA (154.15) as it trades back above the moving average.

A break/close above the 157.20 (161.8% Fibonacci extension) to 157.90 (161.8% Fibonacci extension) region brings the September 2008 high (159.61) on the radar, with the next area of interest coming in around 160.40 (100% Fibonacci extension).

However, failure to clear the July high (158.05) may keep EUR/JPY in a defined range, with a move below 154.90 (61.8% Fibonacci extension) bringing 153.30 (50% Fibonacci extension) back on the radar.