EURJPY holds a neutral intraday bias as prices consolidate in the upper 133 handle after a rebound from 131.65 (October 16 low). More upside is possible since a bullish signal was given by the crossover of the Tenkan-sen line above the Kijun-sen line on the 4-hour chart last week and prices are currently trading above these lines.
In the bigger picture, EURJPY was consolidating after peaking at 134.40 on September 22. The Ichimoku cloud on the 4-hour chart was moving sideways since early October but is starting to point up, shifting near-term risk to the upside.
Immediate resistance lies at 134.40 (September 22 high). A sustained break above this would confirm a resumption of the recent uptrend that started from 129.36. EURJPY seems to be well supported above 133.64, which is the Tenkan-sen line. If this support level holds, it will increase the odds for another leg higher in the coming days.
A dip below 133.64 would find further support at 133.32 (Kijun-sen) ahead of the key 133.00 level. Breaking this support would shift the focus to the downside with scope to reach the lower end of the range at 131.65, and then from here confirming a reversal of the recent uptrend from 129.36.
Overall, the 4-hour chart shows signs of bullish momentum in the near term as the market continues to progress towards the top of the range and above the Ichimoku cloud.
