EUR/JPY pressing against 137.00/20, weak Tk/Kj cross on the hourly

FXstreet.com (Barcelona) - EUR/JPY came down to test intraday support zone at 137.10/20 after failing to maintain most of its daily gains along the US session, with 138.00 offers blocking the steady bullish progress.

EUR/JPY, weak Tk/Kj cross on the hourly

From an ichimoku standpoint, the pair had a weak tenkan/kijun cross on the hourly, an occurrence which paves the way for price to test the top of the cloud (Senkou span A) just below 137.00, a level converging with the 20-ema on the H4 chart. Higher time frames still support the bullish bias, and so far, the retracement is simply seen as a rebalancing of prices on o/b reads.

EUR/JPY needs to break 138.00

Going forward, "the upside continues to be favored, with a break above 138.10 area pointing for a slow but steady advance up to 140.00" notes Valeria Bednarik, Chief Analyst at FXstreet.com. EUR/JPY awaits clues for next direction from Nikkei.

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