EURJPY has been plunging over the last couple of days, recording a fresh almost two-week low near 121.33 earlier today.
The bearish cross within the 20- and 40-simple moving averages (SMAs) in the 4-hour chart is increasing speculation for more downside risks. The RSI is heading towards the oversold territory, while the MACD is strengthening its bearish momentum.
If the price continues the downfall from the six-week high of 123.34, it could meet support near the ascending line of the triangle formation around the 121.00 psychological mark, which coincides with the 120.95 barrier. Even lower the pair could challenge the five-month low of 120.77 and the 120.60 levels, shifting the slightly bullish structure to bearish in the very short-term.
A possible pullback may meet resistance at the 23.6% Fibonacci retracement level of the downleg from 126.80 to 120.77 near 122.20, while marginally higher the bulls could try to overcome the SMAs, hitting the 122.55 resistance level.
Looking at the bigger picture, EURJPY has been developing within an ascending triangle pattern over the last month and only a close above the significant area of 123.15 could change the long-term outlook to bullish.
