- EURJPY looks neutral in short-term view
- 200-day SMA seems to be another real struggle for bulls
- MACD and stochastics weaken their momentum
EURJPPY has been stuck within a tight range of 162.30 and 163.45, remaining in a broader sideways channel of 155.15-164.00. The pair has been consolidating over the last seven days and needs a further boost for a successful rally above the range, as well as the significant 200-day simple moving average (SMA) at 164.40.
According to the technical oscillators, the MACD is losing some momentum above its trigger and zero lines, while the stochastic turned slightly higher after the drop from the overbought territory.
If the pair manages to climb beyond the restrictive resistance region of 163.45-164.00, then the strong battle would come from the 200-day SMA at 164.40 and the 50.0% Fibonacci retracement level of the down leg from 175.37 to 154.40 at 164.80. Rising further, the bulls could take the lead in the short term, meeting the 61.8% Fibonacci at 167.20.
On the other hand, a dive beneath the 38.2% Fibonacci of 162.30 could drive traders lower to the bullish crossover within the 20- and 50-day SMAs around 160.60. Switching the view back to neutral, the pair could test the next lines in the channel, such as 159.30 and 158.10.
All in all, EURJPY would have a clearer picture only if there is a break above 164.00 or below 155.15 in the short-term outlook.Â
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