EURJPY has been moving in a sideways channel over the last month, with strong resistance level the 129.28 barrier and support level the 127.60 region, having as a mid-level the 23.6% Fibonacci retracement level of the downleg from 133.10 to 126.60, around 128.15. Technically, in the 4-hour chart, the RSI indicator is sloping upwards below the threshold of 50, while the MACD oscillator posted a bullish crossover in the negative zone, confirming the recent upside move.
If the market surpasses the 23.6% Fibonacci mark and the 20-simple moving average (SMA) in the 4-hour chart, the pair could meet resistance at the 40-SMA near 128.40. More advances could likely open the way until the 128.90 resistance and the 38.2% Fibonacci mark of 129.10.
On the flipside, if the market manages to turn to the downside and slip below the lower boundary of the trading range of 127.60, attention could turn on the 127.25 support, taken from the low on October 29. A clear run below this area could see the price testing the 126.60 hurdle, registered on October 26.
Overall, looking at the short-term picture, the market is expected to remain neutral for the next sessions.
