EURJPY tested the 136 handle on Tuesday as it attempts to close above the 50-day moving average after failing to do so in the previous two days. The intra-day bias has weakened after falling back below 136 but remains slightly positive with RSI holding above 50.
The 100-day moving average is the nearest resistance at 136.44 but EURJPY needs to climb above the September 17 high of 137.43 for a more decisive reversal of trend. The pair has been in a downward sloping channel since the beginning of June, closely following the 200-day moving average. Prices have now crossed back above the 200-DMA but the flatlining Ichimoku cloud signals a neutral outlook in the medium term.
To the downside, support comes from the 200-DMA at 134.43. A break below this level would shift the bias back to negative.
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