EURJPY is returning slightly up today, after the aggressive sell-off from the 130.70 resistance level. The buying pressure could find strong resistance around the 23.6% Fibonacci retracement level of the downward wave from 134.11 to 127.90 at 129.40 and the simple moving averages (SMAs), before moving towards the Ichimoku cloud.
Technically, the RSI indicator is pointing upwards in the bearish territory, while the stochastic oscillator, after the bearish cross within the %K and %D lines in the oversold zone, is making an attempt to exit from this region.
So, if the pair successfully climbs beyond the 129.40 barrier, it could meet the 38.2% Fibonacci of 130.30 and the highs from September 3 and September 8 at 130.70. More gains could take the market towards the psychological level of 131.00, which is the 50.0% Fibonacci and then at 131.10. Above this, the bulls could send the price until the 61.8% Fibonacci of 131.75 and any more increases could shift the bearish bias to bullish.
On the other side, a drop below the 127.90 support could open the way for a lower low in the medium-term, touching the 127.38 inside swing high, registered in January 29. A new movement lower could halt the bearish actions at 126.10 and 125.10. being the lows from February 4 and January 18.
Overall, EURJPY has been in a negative tendency over the last four months and only a push above 131.75 may switch this view to positive.