Wed, Mar 29, 2023 @ 07:04 GMT
HomeContributorsTechnical AnalysisEURJPY Lacks Direction as Near-Term Outlook Turns Neutral Again

EURJPY Lacks Direction as Near-Term Outlook Turns Neutral Again

EURJPY has found a strong resistance level near the 23.6% Fibonacci retracement level of the up leg from 124.40 to 148.40 at 142.70 once again, which is also acting as an upper boundary of the short-term consolidation area. The pair penetrated the long-term symmetrical triangle to the upside in the previous couple of sessions, but it seems to be a false bullish sign for traders.

According to the technical oscillators, the RSI is sloping down in the positive region and is standing near the neutral threshold of 50, while the MACD ticked above the zero level with weak momentum.

If sellers manage to close decisively below the downtrend line and the 200-day simple moving average (SMA) at 141.00, the 139.90 support could deter the price from encountering the 38.2% Fibonacci of 139.20. Falling below this, the lower boundary of the channel at 138.00 could attract more attention before shifting the outlook to strongly bearish towards 137.40 and the 50.0% Fibonacci of 136.35.

To the upside, an initial important resistance region near the 142.70 mark could prove difficult to overrun. Conquering this, the 146.70-147.10 zone could halt the climb towards the eight-year peak of 148.40.

All in all, EURJPY looks neutral in the short-term timeframe and still bearish in the medium-term. Any successful jump above the 23.6% Fibonacci of 142.70 may switch the broader outlook to slightly bullish.
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