EURJPY is moving sideways after the jump to the eight-year high of 148.40, failing to endorse the bullish outlook in the long-term. The RSI indicator is moving lower in the positive region, while the MACD oscillator dived beneath its trigger line above the zero level. The 20- and 40-day simple moving averages (SMAs) are still moving north and are acting as strong support lines.
Should selling forces strengthen, the 20-day SMA at 145.25 will come under the spotlight ahead of the 144.10 support. Moving lower, the 23.6% Fibonacci retracement level of the upward wave from 124.40 to 148.40 at 142.75 could next add some footing, overlapping with the 50-day SMA. A break lower could open the way for the long-term uptrend line near 141.10 and would put the recent upside tendency under examination.
Alternatively, a close above the multi-year high of 148.40 will brighten the broader outlook, pushing the price towards the 149.75 barrier registered in December 2014. Beyond that, the rally may gear up to the inside swing low from March 2008 at 151.70
In brief, EURJPY is facing a weaking bullish bias, where a drop below the ascending trend line around 141.40 is expected to enhance selling interest.
