EURJPY is currently trading between the 50- and 100-day simple moving averages (SMAs) after forming a fresh low at 122.83. The pair seems to be stuck between the margins of the 121.61 low and the 125.23 level, which happens to be the 23.6% Fibonacci retracement of the up leg from 119.30 to 127.06. The gradual inclines in the 100- and 200-day SMAs are safeguarding advances, while the declining 50-day SMA is conveying weakness in the pair.
The short-term oscillators are displaying minor price improvements in the sideways market. Barely below zero, the MACD is ever so slightly above its red trigger line, and both are nearing the neutral threshold. The stochastic oscillator is positively charged while the RSI is sustaining strength above the 50 mark.
In a bullish scenario, initial obstructions may develop from the 100-day SMA at the 38.2% Fibo of 124.08. If buyers progress within these boundaries of the consolidation, they may hit a resistance ceiling from the 125.00 round number until the 23.6% Fibo of 125.23. If this controlling belt fails to mute the climb, the pair could next shoot for the 126.45 high. Persistent buying may then challenge the 126.80 obstacle and the multi-month peak of 127.06, before steering the pair towards the March 2019 peak of 127.49.
Otherwise, a dip underneath the 50-day SMA at 123.50 may receive support from the 122.83 nearby low. Slipping further, the 61.8% Fibo of 122.25 may impede the price from applying pressure on the 121.61 critical trough. Approaching beneath, the 200-day SMA at 121.42 and the neighbouring 76.4% Fibo of 121.13 may attempt to veto further loss of ground towards the 120.25 lows.
Summarizing, EURJPY is cycling amidst the confines of 121.61 and 125.23. A more decisive direction could evolve should the price manage to break below or above one of these shackles.
