EURJPY has been developing within an upward sloping channel over the last couple of weeks, surpassing the simple moving averages (SMAs) in the 4-hour chart. However, the technical indicators are losing some momentum. The RSI is pointing south near 50 level, while the MACD is moving sideways above the zero line.
A pull back may meet immediate support around the 20-period SMA currently at 121.45 while slightly lower the bears could try to touch the 121.30 support. Should the price retreat under the 40-period SMA too, the 38.2% Fibonacci retracement level of the up leg from 114.40 to 124.45 at 120.60, the lower surface of the Ichimoku cloud and the 100-period SMA could attract attention.
In the positive scenario, the pair could improve above the 23.6% Fibonacci mark of 122.08 to challenge the 122.50 resistance level. The one-year high of 124.45 remains the big highlight.
In brief, EURJPY is expected to continue the north-run in the short-term channel, while in the medium-term, buying interest could advance if the market confirms a jump above the one-year peak.