EUR/JPY Price Analysis: Braces an impulsive rally above 145.00

• A breakout of an inverted H&S formation has underpinned the greenback bulls.
• Advancing 20-and 50-EMAs add to the upside filters.
• The RSI (14) is oscillating in the bullish range of 60.00-80.00 which indicates more upside ahead.

The EUR/JPY pair is aiming sharply higher and has reached near the immediate hurdle of 144.80 in the Tokyo session. The asset has picked bids as the risk aversion theme has faded away after the S&P500 rebounded firmly. An increased appetite for risk-sensitive currencies has underpinned the shared currency bulls.

On a four-hour scale, the asset has given a breakout of the Inverted Head and Shoulder by violating the horizontal resistance (now support) plotted from September 20 high at 144.04. The asset is expected to meet offers around a seven-year high at 145.64, however, the ongoing upside momentum may push the cross into unchartered territory.

The 20-and 50-period Exponential Moving Averages (EMAs) at 144.65 and 142.72 are advancing, which favors the Eurozone bulls.

Also, the Relative Strength Index (RSI) (14) has shifted into the bullish range of 60.00-80.00, which indicates that the bullish momentum has already been triggered.

A break above the seven-year high at 145.65 will drive the asset toward the 29 December 2014 high at 147.22, followed by December high at 149.52.

Alternatively, the yen bulls will take the charge if the asset drops below the previous week’s low at 140.90, which will drag the cross toward the psychological support of 140.00. A slippage below the latter will drag the asset toward September 28 low at 138.80.

EUR/JPY four-hour chart