EURJPY has been on the sidelines since July 2019 with upper boundary the 122.90 resistance and lower boundary the 116.10 support level. However, the RSI is continuing its bullish move towards the 50 level and the stochastic is heading up after the bullish cross within its %K and %D lines in the oversold zone.
Over the last couple of days, the pair is edging north following the rebound on the 116.35 barrier and is moving towards the next immediate level, which is acting as resistance, the 20-day simple moving average (SMA) at 118.76. Marginally above this line, the 40-day SMA at 119.06 could halt bullish actions before challenging the 100-day SMA at 120.18. Even higher, a strong resistance is awaiting investors at 121.13 – 121.40 from the latest highs.
Alternatively, a drop lower again could revisit the 116.35 support and then the lower boundary of 116.10. A break of the sideways channel could find immediate barrier at 115.85, registered on September 2019. Even lower, a level from April 2017 could come in focus at 114.85.
All in all, EURJPY maintains a neutral outlook both in the short and the long-term timeframes.
