EUR/JPY Price Analysis: 130.50 remains major hurdle for Bulls to sustain gains

• EUR/JPY is posting gains for the sixth straight session on Wednesday.
• A break above 130.50 would entice more upside for the pair in the near term.
• Momentum oscillator signals continuation of the upside momentum.

EUR/JPY edges higher on Wednesday morning in the early European trading session. The pair hovers in a very narrow trade band riding up on the previous day’s gains. At the time of writing, EUR/JPY is trading at 130.30, up 0.03% for the day.

EUR/JPY daily chart

Technically speaking, the EUR/JPY cross-currency pair has posted strong gains after testing the support near double bottom formation at 127.94 in the past week. Now, the upside rally is losing its momentum with the formation of a Doji candlestick in today’s session.

Having said that, if price breaks the 130.50 strong resistance zone, it could test the 100-day Simple Moving Average (SMA) at 130.82. The Moving Average Convergence (MACD) indicator holds trades above the midline with a bullish stance. Any uptick in the MACD would prompt EUR/JPY bulls to meet the 131.00 horizontal resistance zone. Upon successful testing of the mentioned level, the EUR/JPY bulls would attempt to recapture the high made on July 6 at 131.86.

Alternatively, if prices reverse direction it could fall back to the 130.00 horizontal support level followed by the previous day’s low at 129.66. Next, the market participants would keep their eyes on the 129.20 horizontal support level.

EUR/JPY techncial levels