EURJPY looks to be mostly neutral after an ascent from the May 7 low of the three-and-a-half-month trough of 114.40, returning the price back below the short-term simple moving averages (SMAs) in the 4-hour chart.
The short-term oscillators reflect a stall in the positive momentum. The MACD, in the negative area, has moved below its red trigger line and near zero, while the RSI hovers beneath its neutral mark. Additionally, a conflicting bearish picture is currently displayed within the Ichimoku lines.
If sellers manage to close decisively below the 121.30 support and the lower surface of the Ichimoku cloud, the 38.2% Fibonacci retracement level of the up leg from 114.40 to 124.45 at 120.60 could be the next target. Falling below this, the door could open for the 120.00 round number and the 100-period SMA. Even lower, the 50.0% Fibonacci of 119.46 may challenge bears’ efforts to revisit the 118.80 support.
To the upside, an initial important resistance region from the 23.6% Fibo of 112.08, which overlaps with the 20-period SMA, could prove difficult to overrun. Conquering this, the 40-period SMA at 122.50 could halt its climb towards the one-year peak of 124.45.
Concluding, the price pulled back from the 124.45 resistance slip the market inside the cloud and beneath the bearish cross within the 20- and 40-period SMAs.
