EURJPY is retreating during today’s European session while it has been trading within a narrow range over the last almost two weeks, with upper boundary at the 136.20 resistance level and lower boundary at the 135.15 support barrier.
The pair managed to crawl back towards 135.15 after the bounce off the mid-level of the Bollinger band and a break below the narrow range could endorse the downward pressure until the 134.40 price level, which is the 23.6% Fibonacci retracement level of the up-leg from 127.50 to 136.60. As a side note, euro/yen needs to go through the 135.00 critical psychological barrier before it creates further losses.
On the upside, if prices successfully surpass the region within the bearish crossover of the 20-simple moving average with the 40-SMA, this could shift the short-term outlook to a more bullish one as it could take the pair towards the 136.20 barrier.
In the 4-hour chart, momentum indicators are suggesting further downside tendency. The Relative Strength Index (RSI) is standing below the 50 level and is sloping south, whilst the MACD oscillator entered the bearish territory (but with weak momentum).
