EUR/JPY Price Analysis: 130.50 remains major hurdle for Bulls to sustain gains

• EUR/JPY posting strong gains on the first trading day in the European trading session.
• A break above 130.50 would entice more upside for the pair in the near term.
• Momentum oscillator signals the continuation of the upside momentum.

EUR/JPY edges higher on Monday in the early European trading session. The pair extends the previous session’s gain and rides higher comprising more than 70-pips movement. At the time of writing, EUR/JPY is trading at 130.47, up 0.51% for the day.

EUR/JPY daily chart

On the daily chart, the EUR/JPY cross-currency pair has posted strong gains after testing low at 128.33 on Wednesday. The pair posted gains for the third straight session. Now, a break and closing above 130.30 will be the real test for the bulls.

Having said that, if the price breaks the 130.50 strong resistance zone, it could test September,3 high at 130.74. The Moving Average Convergence (MACD) indicator trades above the midline with a bullish stance. Any uptick in the MACD would prompt EUR/JPY bulls to meet the 131.00 horizontal resistance zone. Upon successful testing of the mentioned level, the EUR/JPY bulls would attempt to recapture the high made on July 6 at 131.86.

Alternatively, if prices reverse direction it could fall back to the 130.00 and the 129.50 horizontal support levels respectively. Next, the market participants would keep their eyes on the psychological 129.00 level.

EUR/JPY additional levels