EURJPY’s decrease from the 127.34 area appears paused, surrounded by the congested simple moving averages (SMAs). The falling red Tenkan-sen line and the topping blue Kijun-sen line are promoting the recent fading in price, while as the pair stands the relatively neutral SMAs are backing no clear price direction.
The short-term oscillators are also conveying mixed signals in directional momentum. The MACD is merely below its red trigger line and the zero mark, while the RSI is improving in bearish territory. Yet, the stochastic oscillator has turned negative and is endorsing further price deterioration.
If sellers steer the price beneath the 100-period SMA and the cloud at 126.12, early downside hindrance may arise at the 126.00 hurdle. If the latest retracement sustains its trajectory, sellers may encounter hardened support from 125.70 until 125.59, as well as at the supportive trend line drawn from the three-and-a-half-year low of 114.42. Should the downfall persist, the bears could then target the zone between the 125.26 and 125.12 troughs.
Alternatively, if buyers find footing off the 100-period SMA at 126.12, initial heavy resistance could develop at the merged and flattening 50- and 200-period SMAs at 126.37. Overcoming this, the price may meet the 126.62 barrier and the blue Kijun-sen line at 126.70 ahead of the 126.81 high. Should the climb from here intensify, the bulls could tackle the 127.00 boundary before propelling for a retest of the 127.34-127.49 resistance ceiling.
Summarizing, the pair is fluctuating between the confines of 125.08 and 127.49. That said, for EURJPY to sustain a short-term neutral-to-bullish bias, it will need to remain above the 125.08 trough and the supportive trend line.
