EURJPY reached a fresh three-month low of 122.16 on Wednesday, continuing the sell-off in the short-and medium-term timeframes. The RSI indicator is ticking lower in the negative territory, while the MACD oscillator is flattening below its trigger and zero lines. Also, the 20- and 40-period simple moving averages (SMAs) are sloping down, confirming the recent bearish structure.
Immediate support could come from the three-month trough of 122.16 before meeting the 121.95 barrier, taken from the inside swing high on July 6. Steeper decreases could see the 120.27 level, taken from the low on July 10.
Alternatively, a jump above the 123.00 psychological level could drive the market until the 123.34 barrier, which stands slightly above the 20-period SMA. Above that, the 40-period SMA could come next at 123.65 ahead of the 124.20 resistance.
Summarizing, EURJPY has been in a descending move since October 9 in the short-term timeframe after the significant dip to 122.16.
