EURJPY is tumbling below the medium-term ascending trend line, changing the bullish outlook to neutral. The RSI is sloping downwards in the negative region, while the MACD is losing momentum below its trigger and zero lines. In trend indicators, the 20-day simple moving average (SMA) is turning lower, approaching the 40-day SMA for a possible bearish cross.
If sellers sink deeper, than the price may meet the 38.2% Fibonacci retracement level of the up leg from 124.40 to 144.25 at 136.75. Steeper declines under the line would have to tackle a more durable support section from the 50.0% Fibonacci at 134.30 and the 200-day SMA at 133.18. Extending lower could encounter the 132.60 barrier and the 61.8% Fibonacci at 131.90, shifting the outlook to bearish.
On the other hand, if buying interest picks up, early tough resistance could occur at the 23.6% Fibonacci of 139.55, where the 40-day SMA also resides. A violation of this level may shoot the pair to challenge the 20-day SMA at 141.00 ahead of 142.35. Even higher, the price may surge towards the more-than-seven-year peak of 144.25.
Overall, the very near-term picture remains negative below the ascending line; however, in the bigger picture, a bearish outlook may come only if there were a break below the 200-day SMA.
