EURJPY is struggling to gain ground within the 130.00 territory despite ticking to a fresh 29-month high of 130.47 on Monday.
The recent weakness in the RSI and the Stochastics reflects the muted tone in the market and warrants some caution about the five-week-old rally as the former is looking to exit the overbought territory and the latter has already posted a bearish cross above its 80 overbought mark. The MACD has also eased its positive momentum but remains above its red signal line.
That said, the bears may not take full charge unless the one-month-old crucial support around the red Tenkan-sen line at 129.60 gives way towards the 20-day simple moving average (SMA). Beneath the 129.00 level, the spotlight will fall to the 128.40 barrier.
If the 130.00 mark keeps a strong footing under the price, the bulls may attempt to drive towards the 131.00 number, while higher, the next obstacle could pop up around 132.00.
Briefly, EURJPY may become sensitive to downside corrections in the near term, though only a close below the key support of 129.60 could raise caution in the market.
