EURJPY is capped just under the 200-day moving average. The tenkan-sen line is also acting as a barrier to the upside, so strong resistance lies at the key 137.00 level.
Prior to Monday’s big drop, EURJPY was declining from 141.04. The decline paused after prices found support at the cloud on Monday and following a bounce from 133.75, the market has been consolidating. The flat tenkan-sen and kijun-sen lines suggest more sideways action.
If prices fall below Monday’s low of 133.75 then the market will shift to bearish. RSI is below 50 so this supports the bearish bias. To the upside prices have several barriers to overcome before gaining upside momentum. These barriers include the 137.00 resistance as well as the tenkan-sen and kijun-sen lines. But breaking above these would open the path towards the June 4 high of 141.04.
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