EUR/JPY rallies before losing momentum before weekend

The EUR/JPY pair managed to bounce off the day’s lows at 139.03 and hit a daily high of 141.19 before losing momentum. The pair has reclaimed and achieved a daily close above the 200-day EMA keeps bulls hopeful of higher prices.

Ahead of the weekend, the Japanese Yen weakened following the BoJ’s monetary policy meeting, with the BoJ resolute in keeping its dovish stance, and the Yield Curve Control (YCC). On the other hand, the Euro sharply rallies on Friday.

As a result, the EUR/JPY pair gains traction and exchanges hands at 140.63, above its opening price by more than 1%. Technically; the pair’s daily chart depicts reclaiming the 20 and 200-day Exponential Moving Averages (EMAs), each at 140.45 and 140.15, respectively, keeping bulls hopeful for higher prices.

The pair’s path of least resistance is upwards. Hence, the EUR/JPY’s first resistance would be the January 20 high of 141.19, followed by the January 18 daily high at 141.68, and by the figure at 142.00.