• EUR/JPY trades cautiously on Wednesday in the early Asian trading session.
• A break above 132.50 would entice more upside for the pair in the near term.
• Momentum oscillator signals caution before placing any aggressive bids.

EUR/JPY accumulates gains in the middle of the week. The pair stayed in a very narrow trade band despite the previous session’s upside momentum. At the time of writing, EUR/JPY is trading at 132.41, up 0.02% for the day.

EUR/JPY daily chart

On the daily chart, the EUR/JPY cross-currency pair has been on the continuous upside after testing the low of 128.33 on June 10. The spot peaked at a four-month high at 133.48 on October,20 before retreating toward the low made on Monday at 131.86.

If the price breaks above the intraday high it could test Thursday’s high of 132.79. The Moving Average Convergence (MACD) indicator holds above the overbought zone. Any uptick in the MACD would prompt EUR/JPY bulls to meet the 133.00 horizontal resistance zone. Upon successful testing of the mentioned level, the spot would attempt to extend gains beyond toward the four-month highs of 133.48.

Alternatively, if the price reverses direction it could fall back to the 132.00 horizontal support level. Next, the market participants would keep their eyes on the low of October,15 at 131.82, followed by the 131.20 horizontal support zone.

EUR/JPY additional levels