EURJPY could not find enough buyers to overcome the 130.55 level last week, with the spotlight shifting again towards the 200-day simple moving average (SMA).
Encouragingly, however, the RSI indicator is pointing up in the negative territory, providing some optimism that the bulls may not give up the battle yet. On the other hand, the stochastic oscillator is sloping downwards after the bearish cross within the %K and %D lines, overall mirroring the latest downside move from the more-than-three-year high of 134.11.
The 129.80 number, where the 20-day SMA is currently hovering, could challenge any bullish attempts towards the 130.55 area. Any breakout at this point may gather extra interest, with the price likely speeding up to the 131.00 handle. The 132.70 resistance could next come on the radar, though only a rally above 134.11 can boost buying confidence in the medium- and long-term pictures.
Alternatively, an extension below the 200-day SMA would strengthen the case of a down-trending market, likely activating a fresh bearish wave towards 128.28-128.55. Failure to hold above that floor could cause another negative extension towards 127.38 and 125.10.
In brief, the negative trend below the more-than-three-year high of 134.11 remains valid, keeping the bearish outlook intact.
