EURJPY has been in an upside corrective mode after the rebound off the 127.90 level, creating a triple bottom.
Technically, the RSI indicator is pointing upwards in the negative region, confirming the recent bullish move; however, the MACD is still holding below its trigger and zero lines. In trend indicators, the 20- and 40-day simple moving averages (SMAs) posted a bearish crossover in the short-term, approaching the 200-day SMA as well.
If the price continues the upside move, immediate resistance could come from the 200-day SMA at 130.56 ahead of the negative cross of the short-term SMAs at 130.75. Breaching these lines, the barrier could meet the 131.40 barrier ahead of the 132.90 level.
On the flip side, a potential downside movement could test again the 127.90 bottom. A successful break below this key support, it could shift the outlook to strongly negative, hitting the 125.15 hurdle and the 122.80 level.
Summarizing, EURJPY is creating a triple low around 127.90 and any moves beneath this line could endorse the bearish bias. Though, a jump beyond the more-than-three-year high of 134.11 could switch the outlook to positive.
