EURJPY bulls are pushing back after the converged simple moving averages (SMAs) failed to halt fresh plunges in the price. The SMAs are lacking any definitive trend suggestions but could now prove to be a tougher barrier for buyers to overstep.
The short-term oscillators are signalling that negative impetus in the pair has lost some might. The MACD’s decline below its red trigger line has softened slightly on its way to the zero threshold, while the RSI is improving in the bearish region. Furthermore, the stochastic %K line’s negative charge is waning in oversold territory.
As negative impetus continues to lose its might, the bulls may put pressure on the immediate resistance zone existing between the 130.03 inside swing low and the mid-Bollinger band at 130.50. Recapturing the region above this fortified barrier could boost upside momentum, propelling the price towards the 131.90 high and adjacent 132.00 handle. If bullish pressures endure, the 132.70-133.14 boundary could then come under attack, which encapsulates the upper Bollinger band as well.
Otherwise, if sellers retake control, initial downside friction could evolve at the 129.19 obstacle before the bears dive to test the support zone from the 128.40 level until the 128.00 hurdle, where the lower Bollinger band currently resides. Breaching this too, negative pressures may then attempt to deepen the down move in the pair with a break of the significant 127.08-127.49 base, which has defended the broader positive structure since February 2021.
Summarizing, EURJPY’s latest bearish bearing remains intact below the flattened SMAs and the 131.90 high, despite buyer’s emergence beneath the moving averages.
