EUR/JPY has been experiencing a decline in the last few daily sessions after its latest advance paused at the 142.31 region.
Although the pair managed to cease its drop, its upside remains capped by the congested region that includes its 50-day simple moving average (SMA) and the upper boundary of the Ichimoku cloud.
The momentum indicators suggest that negative momentum is strengthening. Specifically, the stochastic oscillator is sloping downwards near the 20-oversold area, while the RSI is hovering below its 50-neutral threshold.
Should selling pressure intensify further, the recent low of 138.70 could act as the first line of defence.
Sliding beneath that floor, the price may descend towards the crucial 136.85 barrier before it challenges the May low of 132.64. Failing to halt there, the bears could then aim for the 131.60 hurdle.
To the upside, if buyers re-emerge and push the price above its 50-day SMA, immediate resistance could be encountered at the 140.68 region.
Breaching this ceiling, the spotlight could then turn to the recent reversal point of 142.31. An upside violation of the latter might then set the stage for the 7½-year high of 144.27.
Overall, despite its recent weakness, EURJPY maintains its bullish technical picture. For that to alter, the price needs to decisively dive below the 136.85 floor.
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