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Technical Analysis – EURJPY faces big challenge around 125.50; lacks direction in medium-term
EURJPY has gained little over the last sessions but it is still holding below the 20-period simple moving average (SMA). The technical indicators are feeding prospects for a negative short-term trading; the RSI holds below the 50 level, while the MACD is slipping beneath its trigger line.
A failure to overcome the 20-period SMA could send the price down to 125.07-125.25, a challenging point over the last three days. Lower support could be next found around the 124.30 support and the 123.90 barrier.
Alternatively, if the 20- and 40-period SMAs prove easy to get through, the spotlight will turn to the 126.20 resistance, around the upper boundary of the Bollinger band. Slightly above this level, the 200-period SMA would come next around 126.33 before hitting the 126.85 hurdle. On top of that, the bulls could reach the 21-month peak of 127.50.
In the medium-term picture, EURJPY is lacking a clear direction, while in the very short-term, the price is posting lower lows and lower highs.