EURJPY is neutral and is finding strong resistance at the key 129.00 level. After several tests of this area, the pair failed to make a successful break above it.
Upside momentum is not strong as indicated by the RSI, which is merely moving sideways along the 50 level. The risk is to the downside as EURJPY is below the Ichimoku cloud on the 4-hour chart. Note though that there was a bullish crossover of the Tenkan-sen line with the Kijun-sen line earlier today.
Failure to break above 129.00 soon would likely carve out a lower high. The market has been making lower highs and lower lows since the August 2 peak at 131.17. The next target would be at the August 18 low of 127.55. Such a move would increase downside pressure and a deeper decline is expected to target the 126 handle.
Only a clear break above 129.00 would shift the focus back to the upside to target 130.00. From here, 130.55 is a key level to break in order to see a re-test of the 131.17 peak, with scope to see a shift in the short-term trend to bullish.
