The EUR/JPY manages to recoup some of its losses from the previous day.
Additional gains are expected if the price breaks through 130.20.
The momentum oscillator remains in oversold territory, alerting traders to avoid placing aggressive bets.
In Asian trading hours on Friday morning, the EUR/JPY reversed the previous three sessions’ losses. The cross started off weaker, but quickly recovered and reached an intraday high of 130.19.
The EUR/JPY is currently trading at 130.08, up 0.08 percent for the day.
The EUR/GBP currency pair fell quickly from a high of 133.58 on June 16 and hit multi-month support near 130.10 on the daily chart. This is the same level at which the price is currently encountering resistance.
If price remains above the indicated level, it may resume its recovery path toward the horizontal resistance level of 130.50.
With a neutral position, the Moving Average Convergence (MACD) indicator maintains an oversold trajectory. Bulls in the EUR/GBP would aim for the 100-day Simple Moving Average at 131.08 if the MACD rose.
A daily close above the 100-day SMA would accentuate the upward momentum. The bulls will then target the 131.50 horizontal level.
Alternatively, if prices reverse, they may first reach 129.62, the previous day’s low.
If the 129.62 level is broken, the door will be opened to the levels last seen in March.
Participants in the market are attempting to retest the March 31 low of 129.25./n
