EURJPY Remains Above 20-Day SMA With Weak Momentum

Technical analysis of Forex market

EURJPY has gained little this week, and it managed to hold above the 20-day simple moving average (SMA) and re-enter the 137.00 area, with the RSI feeding some prospects for a possible positive short-term move, as it is holding above the 50 level. On the other hand, the stochastic oscillator is ready to create a bearish cross within the %K and %D lines.

A failure to overcome the 138.00 psychological number could send the price down to the 20-day SMA at 137.00. Lower, support could be next found around the 40-day SMA at 135.15, standing above the 134.75 barrier.

Alternatively, if 138.00 proves easy to get through, the spotlight will turn to the almost seven-year high of 140.00. On top of that, the bulls would need to clear the 141.00 round number, registered in June 2015.

In the short-term picture, EURJPY turned positive after the bounce off 124.40. Should the market continue the upward pattern, the outlook may turn brighter. A run above 140.00 would turn the outlook to strongly bullish.