There is a generally positive sentiment among buyers in the dynamics of EUR/JPY. The pair is trading within the framework of a long-term bullish trend.
In favor of buyers in yen trading and the EUR/JPY pair is the so-called carry trade, where a more expensive currency is purchased at the expense of a cheaper one.
As of writing, it is trading near the 150.68 mark, accelerating its growth since the beginning of this week. The nearest resistance is located at last month's high of 151.05, and after breaking through that level, the pair is likely to move towards the multi-year high of 151.60 reached in early May.
From this perspective, it is logical to place a Buy-Stop order above the level of 150.84 with targets near the levels of 151.05 and 151.60.
In an alternative scenario, a breakout of the important short-term support level at 149.84 (200 EMA on the 1-hour chart) could signal an opportunity to open short positions.
However, we would not consider a decline below the support levels of 148.88 (200 EMA on the 4-hour chart), 148.65 (local support level), and 148.20 (50 EMA on the daily chart) at the moment.
Theoretically, a breakout of the 148.20 support level could trigger further downward movement towards the key support levels of 145.40 (144 EMA on the daily chart) and 144.10 (200 EMA on the daily chart), breaking the medium-term bullish trend of the pair. However, even after that, the pair is expected to remain within the framework of the long-term bullish trend (above the support levels of 145.40 and 144.10 on the weekly chart).
Support levels: 150.00, 149.83, 149.00, 148.88, 148.65, 148.20, 148.00, 146.50, 144.10, 143.00, 142.00, 141.00, 140.00, 138.00, 136. 60, 134.40
Resistance levels: 150.84, 151.00, 151.60, 152.00