EURJPY has bounced at the 129.61 level, that being the 50.0% Fibonacci retracement of the up leg from 125.08 until the near 40-Month peak of 134.12, after retreating beneath the 50- and 200-day simple moving averages (SMAs). Price action over the last one-and-a-half-months has been consolidating between 127.92 and the 38.2% Fibo of 130.66. The trendless 50- and 100-day SMAs are reflecting a lack of positive impetus, favouring slightly the downside.
The short-term oscillators are indicating that buyers are struggling to gain the upper hand as positive momentum appears feeble. The MACD, not too far below zero, is floating just underneath its red trigger line, while the RSI is fighting to conquer the 50 level. The stochastic oscillator is in oversold territory but the upturn in the %K line has yet to confirm a surge in positive forces.
If upside pressures remain scarce, abrupt support could arise from the 61.8% Fibo of 128.52 before sellers challenge the reinforced defence of the positive structure at 127.92. Should this key barricade fail to keep the bears at bay, a price dive under the lower Bollinger band could meet support at the 76.4% Fibo of 127.24 prior to targeting the 126.09 barrier.
However, if buying interest increases, initial tough upside limitations could stem from the region between the 50- and 200-day SMAs at 129.39 and 129.79. Driving the price higher, the bulls may encounter another resistance border from the upper Bollinger band at 130.54 until the 131.16 level. Triumphing over this obstacle that also contains the 100-day SMA and the 38.2% Fibo of 130.66, may bolster upside momentum bringing the 23.6% Fibo of 132.00, and neighbouring resistance border of 132.42-132.69 into focus.
Summarizing, EURJPY’s current price action remains confined between 127.92 and 130.66. For a more definitive price direction to evolve, the pair would need to break either below or above the previously mentioned limits.
