Technical Analysis – EURJPY completes upward retracement with weak momentum

EURJPY is creating a bullish correction tendency after the rebound on the six-month low of 129.30. In the short-term timeframe, during Wednesday’s session, the pair hit a 4-month high of 132.42 and touched the 38.2% Fibonacci retracement level of the last big downward movement with the high of 137.50 and the low of 129.30.

Currently, the price is moving slightly lower and the technical indicators are confirming the recent decline. The MACD oscillator lost its upward momentum and is falling, while the RSI indicator is pointing to the downside above the 50 level. Moreover, the 20 and 40 simple moving averages in the 4-hour chart are sloping to the upside, supporting the bullish retracement.

In case of a downside reversal, the price could challenge the 23.6% Fibonacci mark near 131.25 but first needs to drop below the 20 and 40 SMAs. Falling below the aforementioned obstacle could open the way towards the 130.55 support barrier.

On the flip side, further gains could see the 133.00 psychological level coming into view, followed by the 50.0% Fibonacci level near 133.40.