The pair breaks above the 100-hour MA as buyers look to test the upside again
It was a bit of a struggle but it seems like buyers have taken back control on the move to the upside for EUR/JPY. It's also currently breaking out of the downtrend resistance, and that will likely prompt further gains for the pair.
But if you look at the wider picture, there's actually resistance sitting near 135.79 @ 76.4/23.6 retracement level (however you draw the Fib). But also there's further resistance sitting near the 136.00 level too which the pair struggled on the upside move so far this year.
And there are strong offers sitting at these two levels as Mike pointed out here as well @ 135.80 and 136.00.
So while buyers are looking like they have won the battle, but they may not have won the war just yet. Bigger tests are yet to come, and if they can chew through offers just above 136.00 then only it is likely we'll see a retest of the 136.64 (year's high).
Do be reminded that the two central banks for this pair are at play this week (BOJ and ECB) so this could be a fun pair to watch for any action. And if you're planning to trade it, just be reminded that those will be the key risk events for both currencies this week.
