EURJPY has been tumbling over the last couple of days, posting a fresh two-month low of 122.51. The 20- and 40-day simple moving averages (SMAs) are creating a bearish crossover, while the momentum indicators are losing ground. The MACD oscillator slipped beneath the trigger and zero lines and the RSI indicator is approaching the oversold zone.
More downside pressures could lead towards the 38.2% Fibonacci retracement level of the up leg from 114.40 to 127.07 at 122.25, which overlaps with the 100-day SMA. Underneath these lines, the 120.75 support, this being the 50.0% Fibonacci, could be the next crucial target for the bears ahead of the 120.25 barrier.
On the other side, a rebound on the 123.00 psychological level could send the market until the 23.6% Fibonacci of 124.06, holding slightly below the 124.45 resistance. Above that, the bearish cross of the SMAs could pause the bullish structure around 125.06 before touching the 18-month peak of 127.07.
To sum up, EURJPY penetrated the ascending trend line, shifting the bullish bias to neutral. A drop beneath the 61.8% Fibonacci of 119.25 could take the price to negative paths.
