EURJPY is pointing upwards for the third straight day after the bounce off the 127.90 support level. The price is moving towards the 200-day simple moving average (SMA) and if it surpasses this line, the market could shift from bearish to neutral. The RSI indicator is mirroring the positive view, while the stochastic is approaching the overbought zone.
More bullish actions could find immediate resistance at the 40-day simple moving average (SMA) around 129.82 ahead of the 130.55 barrier. Overcoming these obstacles, the door could open for the 131.00 psychological level and next for the 132.70 hurdle.
On the other hand, a pullback of the 200-day SMA could ease the upside pressure and take the price until the 127.90 and the 127.38 supports. If the bears take the upper hand again, this could push EURJPY towards 126.10.
To conclude, EURJPY has been in a descending movement since June 1 and only a significant close above the SMAs may change this current bearish outlook.
