EURJPY’s current consolidation is tackling the 50-period simple moving average (SMA) and upper Bollinger band after improving off a formed three-and-a-half-month low of 121.61. The downward sloping SMAs and their directing bearish mode promote further dampening in the pair.
That said, the price stalemate is also reflected in the short-term oscillators, which confirm fairly oxygen-deprived momentum. The MACD, although soaring above its red trigger line has settled at the zero line, while the upward pointing RSI is zig zagging around its neutral threshold. Nevertheless, the stochastic oscillator presently conveys some strength in the pair, as it holds a positive bearing.
To the upside, immediate constraints may commence from the 50-period SMA at 122.56 until the neighbouring upper Bollinger band at 122.71. Another shove up may encounter the limiting section of 122.88-123.10, before dealing with the 100-period SMA at 123.21. If these obstacles give way, the climb may confront the resistance band of 123.34-123.49, which includes the 200-period SMA. Surpassing this key border too, the price may target the 123.84 and 124.00 highs before testing the 124.22 peak.
In a negative scenario, early hindrance may come from the mid-Bollinger band at 122.24 ahead of the support region of 121.95-122.06. Slightly underneath, the bears may attempt to dive past the crucial area of lows from 121.79 to 121.61, which contain the lower Bollinger band. Should they succeed, the 121.45 low from July, could try to delay a plunge towards the 120.25 trough.
Concluding, EURJPY is edging sideways, though still maintaining a neutral-to-bearish tone below the SMAs. Should the pair conquer the 124.22 peak and the 125.00 handle, a bullish bias could begin to form again, while a slip under 121.61 may rekindle negative worries.
