EURJPY geared down after topping near the familiar 127.50 barrier from 2017 – 2018, but the 20-day simple moving average (SMA) slightly lower at 146.47 managed to put some breaks to selling forces, preventing any move towards the key 146.00 support region.
Currently the short-term bias is looking neutral as the red Tenkan-sen line is flattening marginally above the stable blue Kijun-sen and the RSI seems to be stabilizing its downward move slightly above 50.
The bears, however, may not hesitate to press towards the 50-day SMA and the 38.2% Fibonacci of the 121.60 – 127.48 up leg at 125.20 if the price breaches the 126.00 floor. Moving lower, the 50% Fibonacci, which coincides with a former resistance area of 124.55, could come next into view.
Alternatively, a decisive close above the latest peak of 127.48 could generate fresh buying interest towards the 129.30 level, where the market action paused several times during the 2017 – 2018 period. Not far above, the 130.00 mark could be another level to watch.
Note that the bullish crossover between the 20- and 50-day SMAs remains well intact, keeping hopes of trend improvement alive in the short term.
Summarizing, EURJPY is expected to consolidate gains in the short run. A strong push above 127.48 or below 126.00 could determine the next direction in the market.
