EUR/JPY Price Analysis: Bulls keep eyes on next resistance near 130.50

• EUR/JPY manages to recover part of its previous day’s losses.
• Additional gains envisioned if price decisively breaks 130.20.
• Momentum oscillator holds onto oversold territory and warns of any aggressive bets.

EUR/JPY snapped the previous three session’s losses on Friday morning in the Asian trading hours. The cross opened lower but managed to recover swiftly and traveled to an intraday high of 130.19.

As of writing, EUR/JPY is trading at 130.08  with 0.08% gains for the day.

EUR/JPY daily chart

On the daily chart, the EUR/GBP currency pair fell sharply from the high of 133.58 on June 16 and tested multi-month support near 130.10. The same level, where price is currently facing resistance.

If price sustained above the mentioned level, it could continue with its recovery mode toward the 130.50 horizontal resistance level.

The Moving Average Convergence (MACD) indicator holds onto an oversold trajectory with a neutral stance. Any uptick in the MACD would prompt EUR/GBP bulls to aim for the 100-day Simple Moving Average placed at 131.08.

A daily close above the 100-day SMA would make the upside momentum more prominent. Next, the bulls look forward to the 131.50 horizontal level.

Alternatively, if prices reverse, it could first touch the previous day’s low level at 129.62.

A break of the 129.62 level would open the gates for the levels last seen in March.

Market participants attempt to retest the  March 31 low of 129.25.

EUR/JPY additional level