EURJPY stalled the recent uptrend at 125.80 on May 16. The bias has turned neutral in the near-term.
There is immediate resistance at 124.00. A breach above this level would see a re-test of the 125.80 high and from here bring about a resumption of the uptrend from 114.84 to 125.80. But looking at momentum indicators, there is risk to the downside, with RSI dipping below 50 and MACD sloping down. This reduces the odds for a bounce higher. Immediate support lies at 122.60 and a break below this would expose support at 120.60. Below this, the level at 118.90 comes into view as further support.
For now, the short-term bias is neutral, with the market trapped between 122.60 and 125.80 but the pause in the uptrend could be temporary as the 50-day and 200-day moving averages are positively aligned and the market is above the daily Ichimoku cloud. Only a move below 120.60 would reverse the recent uptrend that has been in place since the rise from the 115 area.
