EURJPY maintains a neutral short-term bias and has been trading in a range late September. The consolidation phase is expected to continue due to the lack of clear direction in the market.
Looking at the 4-hour chart, the recent uptick in RSI indicates the easing in downside pressure as EURJPY moved to the upper end of the range with resistance at 133. A break above this level would improve the odds for an extension to 134.40, a level not seen since November 2015.
A rejection at 133 would shift the focus back to the downside to target the bottom of the range at 131.80. Breaking to the downside of the range would see prices target the September 15 low of 130.60 ahead of the next major low at 129.36.
The broader bias is neutral and this is highlighted by the Ichimoku cloud moving sideways. But near-term risks are tilted to the upside, as suggested by the Tenkan-sen line rising above the Kijun-sen line.
A daily close for EURJPY near the top of the range would help strengthen upside momentum and put an end to the corrective move of the longer-term uptrend that started in April.
