EURJPY spiked higher towards the key technical level of 104.00 yen, surging over 200 pips since the Asian session open on Friday. After making attempts this week to break above 138.00, prices crossed into the daily Ichimoku cloud and above it.
The bulls now have a strong upper hand as the market is also above the 200-day moving average, reinforcing the bullish bias. RSI is in bullish territory above 50.
EURJPY is currently hovering at the 78.6% Fibonacci retracement level (139.70) of the 141.21 – 1343.13 downleg. There is scope for gains towards the September 19 high of 141.21.
To the downside, 139.00 is an important support level, as the 200-day moving average is also located around this area. Failure at this level could see a move lower.