EURJPY continues its descending move after the October high, powered by lingering negative forces. Moreover, its 50-period simple moving average (SMA) has crossed below the 200-period SMA completing a ‘death cross’ and increasing fears of a sustained bearish outlook.
The short-term oscillators are transmitting a negative bias, reflecting the pair’s recent price depreciation. The RSI is found slightly above its 30 oversold regions, while the MACD is found below zero and its red signal line.
If the price crosses below its 129.03 support, the bears may then target the 128.53 barriers. A further descending movement from this level could intensify selling pressures, sending the price to test its 128.32 regions. Breaking below this point could strengthen the pair’s negative momentum, paving the way towards the 127.92 support.
On the flip side, should the bulls regain control, initial support might be found at the 20-period SMA currently found at 129.76? Surpassing this level could open the door towards the 130.10 barriers before testing the congested region which encapsulates the 50-period SMA and the 130.42 resistance. Advancing beyond that region could send the pair towards its 200-period SMA currently at 131.19.
In brief, the overall outlook for the pair is bearish. For that to change, the buyers would need to breach the 200-period SMA.