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Technical Analysis – EURJPY stuck in range; outlook is neutral

EURJPY remains in neutral territory as the recent rally fails to take it past its June 4 high of 141.04 and the Ichimoku cloud is moving sideways. Prices have met resistance just below 139 but would need to rise above the June 4 high to break out of its recent range.

This would also strengthen the weakening bullish signals from the moving averages as the 50-day moving average is in danger of falling back below the 200-day moving average.

In the near-term, there is still some bullish momentum from the recent rally as RSI is holding above 50. But the stochastics are in overbought territory above 80, suggesting some downward pressure in the coming days.  If prices headed down, support would come at the 50-day moving average at 136.98. A drop below this level would take EURJPY back below the cloud and into bearish territory.

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