EURJPY halted its latest steep decline near the 50-day simple moving average (SMA), returning to the green zone on Monday.
The bulls are currently aiming for the 145.00 psychological mark, though the short-term technical picture is barely backing the positive action in the price. Particularly, the bullish trend is showing signs of exhaustion in the short-term timeframe after the peak at an eight-year high of 148.38, with the price making lower lows and lower highs.
In the medium-term timeframe, the latest bounce in the price helped the market to escape an outlook deterioration above 144.00.
In momentum indicators, the RSI and the MACD have been in a negative move too, with the former struggling to rise back above its 50 neutral mark and the latter remaining negatively charged below its red signal line.
On the upside, the 20-day SMA could block the way towards the key resistance of 147.00. If that proves to be the case, the price may reverse lower to retest the 50-day SMA at 144.00. Failure to bounce here could fortify selling pressures towards the support trendline at 141.00. Falling lower, the pair may next seek shelter somewhere between the 139.00 number and the 200-day SMA at 138.30.
Otherwise, a forceful move above 147.00 may immediately falter near the strong resistance trendline, which joins all the highs since August 2020. The line is currently lying around 148.25. If it gives way this time, the spotlight will fall on the 2014 high of 149.76 and the 150.00 handle. Running higher, the next obstacle could emerge around the 151.60 level last active during 2007-2008.
In brief, the current bullish action in EURJPY seems fragile as technical signals show a lack of buying power. An extension above the 147.00-148.25 constraining zone is probably needed to restore confidence in the long-term positive trajectory.