EUR/JPY rose to highs since early September, around 158.90

• EUR/JPY rose to a daily high of 158.92 and then settled at 158.60.
• Indicators suggest that the buyers have the upperhand in the short term, but momentum is weak.

The EUR/JPY’s bulls stepped in on Thursday and advanced to multi-month highs around 158.90. The daily chart suggests that the technical bias is neutral to bullish as the bulls still have more work and the momentum doesn't seem to be enough to trigger the next upwards leg. The neutrality is also given by the pair side-ways trading since September.

The daily Relative Strength Index (RSI) is comfortably positioned in the positive territory above its midline and has a mild northward slope, complemented by a positive signal from the Moving Average Convergence Divergence (MACD), which is showing flat red bars, signalling a growing bullish momentum. Moreover, the pair is above the 20,100,200-day Simple Moving Average (SMA), highlighting the continued dominance of bulls on the broader scale. On the four-hour chart, both indicators support the idea that the upward momentum is somewhat weak, as they turned flat on positive territory.
 

Support levels: 157.50 (20-day SMA), 157.00, 156.50.
Resistance levels:159.00, 159.50, 160.00. 

EUR/JPY Daily Chart