EURJPY recorded an aggressive bearish movement towards a ten-day low of 122.83 earlier today, failing to increase above the 100-period simple moving average (SMA).
The RSI is currently turning marginally up in the bearish region, while the MACD is losing more ground in the negative territory. However, the stochastic indicates that a rebound is not far off since the oscillators are close to oversold levels. Still, this is more likely to happen if the % K line finally forms a bullish cross with the %D line.
Should the market extend losses, immediate support could be met at 122.83. A significant leg below this level could send prices towards the 121.95 barrier before the market retests 121.60.
On the flip side, if the pair bounces up, immediate resistance could come from the 100-period SMA at 123.11. More gains could send the price until the 20-period SMA and the Ichimoku cloud around 123.50 ahead of the 123.60 resistance. Steeper increases could visit the 40-period SMA at 123.80 and the 124.50 – 124.65 zone.
In the bigger picture, the pair is bearish as long as it holds below the 100-period SMA. In case it violates 125.11, the bulls could take the upper hand.
