EURJPY has tumbled towards a fresh four-month low of 123.10 this week as the price started a bearish rally from the 126.80 resistance level. The technical picture supports that the bearish view is likely to continue in the short-term. The MACD is stretching to the downside below its trigger line and the stochastic oscillator is hovering in the oversold zone in the 4-hour chart.
In case of more negative pressures, the market could meet support at the 123.10 level while a successful close below this level could see a retest of the 122.80 trough, reached on January 4.
On the flipside, a move to the upside could find resistance at the 20-simple moving average (SMA) in the near term currently at 123.90 ahead of the 23.6% Fibonacci retracement level of the downleg from 126.80 to 123.10, near 123.96. Only a jump above the downtrend line around 124.30 could shift the bias from bearish to bullish.
In brief, EURJPY has been in a downward movement over the last three weeks and bears should be waiting for a decline below the 4-month bottom for further selling interest.
