EURJPY has been in a strong uptrend since the beginning of the year, posting consecutive multi-year peaks. In the near term, the pair is experiencing some weakness after getting rejected at the 15-year high near the 158.00 region, potentially forming a double top pattern.
The momentum indicators currently suggest a cautiously bearish near-term bias. Specifically, the MACD is holding below its red signal line in the positive territory, while the stochastics are descending after posting a bearish cross.
Should the selling interest intensify, the pair could retreat to test the 153.31 support, which overlaps with the 50-day simple moving average (SMA). A break below that region could pave the way for the May resistance of 151.60, which might serve as support in the future. Failing to halt there, the price may decline towards the June bottom of 148.58.
On the flipside, if the price reverses back higher, the recent 15-year high of 158.03 could cap initial advances. Conquering this barricade, the bulls might propel the price towards fresh multi-year highs, where the May 2008 low of 158.60 may act as a strong ceiling. Further upside attempts could then stall around the February 2008 peak of 161.38.
In brief, it seems that EURJPY is facing some downside pressure due to its failure to claim the recent 15-year peak. However, to confirm a broader downside correction, the pair needs to pierce through the 50-day SMA.
