EUR/JPY Price Analysis: Bulls set eyes on two-month highs near 131.00

EUR/JPY Price Analysis: Bulls set eyes on two-month highs near 131.00

EUR/JPY continues to gains for the third consecutive session on Wednesday.

A break above 130.70 would entice more upside for the pair in the near term.

Momentum oscillator holds into overbought zone with the bullish sentiment.

EUR/JPY edges higher in the middle of the week in the Asian session. The pair opened slightly lower but recovered swiftly to touch the intraday high of 130.67.

As of writing, EUR/JPY is trading at 130.64 with 0.07% gains for the day.

EUR/JPY daily chart

On the daily chart, the EUR/JPY currency pair has shown resilience from the lows of 127.93 made on August 19. Bulls have taken the charge for the past month and remain in the process to test the 100-day Simple Moving Average (SMA) at 131.13.

Now, If price is sustained above the intradays high, it could test the high made on July 13 at 131.08.

The Moving Average Convergence (MACD) indicator holds onto an overbought trajectory with a bullish stance. Any uptick in the MACD would prompt EUR/JPY bulls to meet 100-day SMA.

Next, the EUR/JPY bulls would attempt to recapture the 131.50 horizontal resistance level.

Alternatively, if prices reverse direction it could fall back to the 130.40 horizontal support level.

A break of the above level would mean bears could test the low made on September 2 at 130.16.

On breaking the psychological level of 130.00, the next destination for EUR/JPY bears could be found at the 129.65 horizontal support level.