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EUR/JPY stalls near 184.70 as key moving averages form resistance
The pair is also approaching the 50- and 100-day SMAs around 184.72 to 184.73, with a break above them needed to target 185.00.
EUR/JPY extended gains for a second straight day but failed to build momentum on Tuesday as buyers ran into resistance around the 184.70 area, leaving the cross poised to finish the day near its opening level around 184.69, according to FXStreet.
The analysis points to a confluence of the 50- and 100-day Simple Moving Averages near 184.72 to 184.73, where the 50-day SMA has shown bullish momentum that could help EUR/JPY move above the 200-day SMA, currently below spot near 184.05.
FXStreet says a decisive break above the 50- and 100-day SMA confluence could set up a test of 185.00, with traders then looking toward the next cycle high at 187.47, the July 29 high.
On the downside, the first support is pegged at the 200-day SMA near 184.05, followed by the May 6 swing low at 182.05 and then the August 3 low at 179.37.