EURJPY rallied early on Friday to reach a high of 135.76 but is finding resistance at the tenkan-sen line. Prices are inside the daily Ichimoku cloud so this could make it more difficult for a sustained rally. Also there are several barriers to overcome (200-day moving average and the kijun-sen line) before we could say that there is a strong upside momentum.
Support is seen at 133.09. A decisive break below this level would strengthen the bearish case and there is scope to target the 126.08 low.
In the bigger picture, the bearish crossover of the tenkan and kijun-sen lines at the end of June and the market’s move back below the 200-day moving average are keeping the bearish bias in place. Only a break above 141.04 would shift the bias.
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