EURJPY appears to be maintaining a horizontal-to-downside trajectory trapped near the 20- and 40-period simple moving average (SMA) as well as the 100-period SMA. A paused state of directional momentum is reflected in the Ichimoku lines, while the price rests around the lower surface of the Ichimoku cloud.
The negative signals in the short-term oscillators further reflect the stall in the price. The RSI has barely inched below the 50 leve and the stochastic %K line is ticking down after it posted a bullish crossover with the %D line.
If sellers drive the pair below the cloud, the 124.43 support could interrupt the pair ahead of the 124.00 handle. In the event selling interest persists the key support level of 122.50 could halt the decline.
To the upside, selling pressure over the last couple of weeks has denied upside moves. If buyers manage to jump above the SMAs around 125.40 then a revisit of the descending line at 125.90 could unfold. Overcoming these constrictions could see resistance develop at the 126.15 before managing to hit the 17-month peak of 126.75.
Summarizing, the confines of 126.15 or 124.43 would initially need to be breached to revive directional momentum. Yet, the short-term picture remains neutral-to-bearish and a break either above 126.75 or below 124.00 would be required to set the next clear course.
