EUR/JPY drifted higher after stepping on the key support trendline that comes from the March lows at 140.75.
Despite the swift upturn in the price, the RSI could not exit the bearish territory, while the MACD was unable to climb above its red signal line, both mirroring some persisting skepticism in the market.
In the short-term picture, the pair has been trading within a downward-sloping channel since the peak at an eight-year high of 148.38. Hence, for buying interest to grow, the price will need to overcome its 20- and 50-day simple moving averages (SMAs) and exit the bearish tube above 145.00. If efforts prove successful, the door will open for the 147.00 resistance. Another move higher could trigger a rally towards the crucial long-term resistance line that joins all the highs from August 2020, currently seen within the 149.50-150.00 region.
Should selling tendencies resurface, the spotlight will fall again on the ascending trendline around 141.00. Failure to pivot here may confirm an extension towards the channel’s lower boundary seen near 140.00 and the 200-day SMA, while a steeper decline could reach the 137.50 constraining zone. If the bearish wave worsens, the next rebound could take place around 135.50.
In brief, the latest quick bounce in EURJPY could not switch the bias to the positive side. For that to happen, the price will need to advance above 145.00.