- EURJPY seems neutral in very short-term
- RSI and MACD indicate bearish correction
EURJPY could not find enough buyers to expand its bullish move above the 170.80 immediate resistance but it has still been developing well above the long-term rising trend line, which has been drawn since December 12.
The question now is whether the pair will stay resilient above the 169.00 key region. A clear step below it and beneath the 20-day simple moving average (SMA) would press the price back to the 167.30 barrier. Slightly lower, the tentative ascending line around the 50-day SMA at 166.70 could prevent a drop towards 164.00 if it is breached.
Technically, the short-term risk is leaning to the downside. The RSI indicator is moving lower above the neutral threshold of 50, while the MACD is losing some steam beneath its trigger line in the positive territory.
The bulls still have the power to stage a rebound and surpass the 170.80 resistance level. In this case, traders will wait for a close above the 40-year high of 171.56 to confirm the long-term bullish outlook, meeting the 172.00 round number.
To sum up, EURJPY is looking neutral in the very short term and any advances above 170.80 could endorse the broader positive picture.
