Technical Analysis – EURJPY’s recent rebound is not enough; remains in descending channel

EURJPY is fluctuating within the one-month-old falling channel, testing resistance from the falling lines of the Ichimoku indicator and the 20-period simple moving average (SMA) near 128.15. The price rebounded off the 127.45 support level, with the technical indicators endorsing/backing the ongoing upside move. The MACD is holding above its trigger line in the negative region, while the RSI is approaching its neutral threshold of 50.

In the positive scenario, where the price snaps the 128.15 barrier and closes above the cloud's lower boundary and the descending trend line, the next target could be the 128.80 hurlde. Running higher, the bulls will need to drive beyond 129.50 to access the 130.00 psychological mark.

Should the bears come into play, the price could initially test the 127.45 and 127.30 support levels before heading towards the return line around 126.70. Not far below, some consolidation could take place near 126.40, registered on February 9.

In brief, despite its resilience above 127.45, EURJPY has yet to show any clear bullish signals, remaining trapped within a downside channel. A move above 128.80 would switch the short-term picture to neutral.

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