EURJPY is trending higher on its 4-hour time frame, forming higher lows and higher highs inside a rising channel. Price seems to be finding support at the mid-channel area of interest and could be due for a move up to the next upside targets.

The Fibonacci extension tool shows the levels that buyers are aiming for. The 38.2% Fib seems to be holding as resistance near the 132.00 major psychological level, but stronger bullish momentum could still take it up to the 50% extension near the 132.50 minor psychological mark.

Sustained bullish pressure could lift EURJPY to the 61.8% Fib at 133.00 and the swing high or all the way up to the full extension near 135.00.

The 100 SMA is crossing above the 200 SMA to confirm that the path of least resistance is to the upside or that the climb is likely to carry on from here. Price also found support at the moving averages’ dynamic inflection points near the 130.00 mark.

Stochastic is turning lower without reaching the overbought zone, indicating that sellers are eager to return. In that case, EURJPY might still dip back to the channel bottom near the 129.00 level.

RSI, on the other hand, is on the move up to show that buyers have the upper hand. The oscillator has plenty of room to climb before reflecting overbought conditions, so buyers could stay in control for much longer.

The euro drew some support from the ECB decision last week, as the central bank surprised market watchers with a more optimistic than usual statement. Many expected the announcement to be a non-event, but ECB head Lagarde hinted that they might be looking to reduce stimulus and tighten policy soon.

Meanwhile, the yen got a boost from risk-off flows stemming from geopolitical tensions, but it looks like safe-haven flows are slowing.