EUR/JPY Price Analysis: 61.8% golden ratio challenges upside momentum
- EUR/JPY grinds higher after confirming a bullish chart pattern.
- Firmer RSI adds strength to the upside bias but 61.8% Fibonacci Retracement level probes buyers.
- Double tops around 144.00 appear the key hurdle, sellers need to break 141.70 to retake control.
EUR/JPY remains sidelined, recently taking offers, while printing mild losses around 142.40 during early Thursday in Europe.
The cross-currency pair confirmed the bullish triangle breakout the previous day but the 61.8% Fibonacci retracement level of September 12-26 downside, around 142.50, challenges the quote’s immediate upside.
Even so, the firmer RSI (14) and successful trading above the 200-SMA keep the EUR/JPY buyers hopeful unless the quote stays beyond the 141.70 support confluence, including the stated triangle upper line and the 200-SMA.
It should be noted that a two-week-old support line, forming part of the triangle, also acts as a short-term key challenge to the EUR/JPY bears, around 141.00 by the press time.
Meanwhile, the pair’s sustained trading above the key Fibonacci retracement level, also known as the golden ratio, will help the buyers to aim for the double tops marked during late September around 144.00.
During the run-up, the October 06 swing high near 143.45 can act as a buffer while the previous monthly high near 145.65 could lure the bulls past 144.00.
EUR/JPY: Four-hour chart
Trend: Further upside expected