EURJPY is holding above the descending trend line that started from June 5 and is approaching the Ichimoku cloud, remaining in a sideways move. The RSI holds in line with the 50 neutral mark but is currently trying to slip in the negative region, while the stochastic oscillator posted a bearish crossover within its %K and %D lines.
Currently, the pair is trading near the lower surface of the Ichimoku cloud and within the 20- and 40-period simple moving averages (SMAs). So, any gains would send the price towards the 121.10 resistance, taken from the latest high. A jump above this line could see a test of the 122.10-122.50 resistance zone, opening the door for a neutral-to-bullish bias.
In the negative scenario, a dive beneath the blue Kijun-sen line could approach the 119.30 support and then the 118.36 barrier. A steeper declining move could meet 117.70 and the 117.00 psycological mark, registered on May 22.
In brief, EURJPY is expected to pause the north-run in the short-term, while in the medium-term, buying interest could advance if the market confirms a close above 122.50.
