EUR/JPY Price Forecast: Bulls need to surpass 200-EMA for the upside, 130.30 eyed

• Bulls need to cross 200-EMA as an upside filter to claim 130.30.
• The cross had opened around 61.8% Fibonacci retracement at 129.16.
• The higher highs and higher lows structure is intact but awaits more upside filters ahead.

The EUR/JPY has been following the primary component of Dow Theory by sustaining above Friday’s low of 128.73 despite the bearish opening gap on Monday. The cross continues to form the higher high and higher low structure but awaits more filters ahead.

EUR/JPY has opened around 61.8% Fibonacci retracement (placed between Fridays’s low and high at 128.73 and 130.30) at 129.16 on Monday. This usually acts as major support for an asset after a correction. Investors often consider these pullbacks as a bargain buy. The cross is trading in a narrow range of 129.15-129.43 and is hinting for a squeeze in the volatility bands.

On a 15-minute scale, EUR/JPY is trading below 50-period and 200-period Exponential Moving Averages (EMA), despite a ‘higher high and higher low’ structure, which signals for a lackluster move going forward. The Relative Strength Index (RSI) (14) has slipped sharply near 30.00 after trading in a bullish range of 60.00-40.00.

Bulls are paying attention on 200-EMA at 129.51, as its violation will send the cross higher towards Friday’s high at 130.30 and Wednesday’s high at 130.71 respectively.

On the flip side, bulls can lose grip it the spot slips below Monday’s low at 129.15 towards Friday’s low at 128.73, followed by Thursday’s low at 127.92.

EUR/JPY 15-minute chart