EUR/JPY Price Analysis: Buyers keep a close watch on 130.50

• EUR/JPY remains muted on Tuesday following the previous day’s effort to move higher.
• The formation of multiple tops near 130.50 makes it a crucial level to trade.
• Momentum oscillator holds onto oversold zone with a bullish crossover.

EUR/JPY snapped the previous four session’s gains on Tuesday morning in the Asian trading hours. The pair opened in the vicinity of Monday’s closing range, where it hovers now near 130.40.

EUR/JPY daily chart

On the daily chart, the EUR/GBP currency pair fell sharply from the high of 133.68 on June 15 and tested low near 127.94 on August 20.  The price sustained recovery from this level and break the descending trendline from the mentioned level.

If price is sustained above the intraday’s high of 130.43, it could recapture the high made on Friday at 130.74.

The Moving Average Convergence (MACD) indicator holds onto an oversold trajectory with a bullish stance. Any uptick in the MACD would prompt EUR/GBP bulls to meet one-month-old resistance at the 131.10 horizontal resistance level.

Next, the EUR/JPY bulls would meet the high of July 6 at 131.86.

Alternatively, if prices reverse direction then it march toward the bearish slop line towards 131.14 level.

A break of the above level would mean bears would test the 129.89 horizontal support level.

Next, market participants attempt to retest the low of July 27 at 129.15.

EUR/JPY additional levels