EURJPY is struggling to progress past the falling red Tenkan-sen line at 128.44 after rebounding around the 127.37 level, in the wake of a seven-week decline from the 133.47 peak. The entangled simple moving averages (SMAs) are currently not revealing a reliable trend in the pair.
That said, the Ichimoku lines are indicating that negative forces are taking a breather, while the short-term oscillators are suggesting positive powers are growing. The MACD, far beneath the zero mark, is preparing to overstep its red trigger line. The RSI is improving in bearish territory, while the bullish stochastic oscillator is promoting upside price action.
Trying to extend its recent traction off the 127.37 low, the pair may face initial resistance originating from the red Tenkan-sen line at 128.44 and the nearby high of 128.78. Climbing further, the bulls could meet a resistance zone from the 129.52 high until the 100-day SMA at 129.88. From here, attempts to recoup extra ground may need to conquer the limiting section between the 50-day SMA at 130.33 and the Ichimoku cloud’s band at 130.70. Surpassing the cloud, buyers could then turn their attention towards the 131.44 barrier.
Otherwise, if buying powers subside and the price recedes beneath the 128.00 handle, sellers could encounter preliminary support from the 127.08-127.37 region. Should this barrier fail to dismiss additional descents in the pair, the price may dive for the 126.09 low before sinking towards the 125.00-125.26 support border, which contains the 125.08 trough from January 18.
Summarizing, EURJPY is exhibiting a strong bearish bearing beneath the 129.52 high and a break below the 127.08-127.37 boundary could accelerate negative pressures. That said, for buyers to regain some confidence, they need to pilot the price above the 131.00 region.
