EURJPY reversed lower after meeting a two-week high around 123.70 on Tuesday, flirting with the 23.6% Fibonacci retracement level of the downleg from 126.80 to 122.07, near 123.20. The technical picture supports that the slightly bearish move is likely to continue in the short-term. The RSI is stretching to the downside and the stochastic oscillator is edging lower in the 4-hour chart.
Another move to the downside could find support at the short-term moving averages around 122.90. A violation of these lines could send the pair until the 122.50 support, taken from the latest lows ahead of the four-month trough of 122.07.
In case of positive pressures, the market could meet resistance at the 123.70 level while a successful close above this barrier could see a retest of the 38.2% Fibonacci of 123.90.
In the medium-term, EURJPY has been in a downward movement over the last three month and bears should be waiting for a decline below the 4-month bottom for further selling interest.