EURJPY is declining somewhat today after the bounce off the 128.55 support level and the 200-day simple moving average (SMA), visiting the 130.00 round number again. The price is still developing below the short-term SMAs and the RSI indicator is suggesting a potential pullback as it is pointing down in the negative territory. However, the stochastic oscillator is gaining momentum in the overbought region.
More descending moves could take the market until the immediate support of the 38.2% Fibonacci retracement level of the up leg from 121.60 to 134.11 at 129.35. Below that, the 128.28-128.55 area, which overlaps with the 200-day SMA may halt the downside actions. If the sellers pressure persists, the pair could meet the 50.0% Fibonacci of 127.85.
On the other hand, a successful jump above the 20-day SMA could drive the price towards the 23.6% Fibonacci of 131.20 and the 40-day SMA at 131.45. Above that, the next resistances are coming from 132.70 and the more than three-year high of 134.11.
In conclusion, EURJPY has been in a bearish mode since June 1 but is still trading above the 200-day SMA. Any climbs above 134.11 could shift the long-term outlook back to bullish one.
