- EUR/JPY bounces off intraday low, remains sluggish on a day.
- Failures to rebound, steady Momentum signal extended grinds to the south.
- 200-SMA, seven-week-old resistance line add to the upside filters.
EUR/JPY rebounds from intraday low to 129.60, revisiting the day-start levels, amid early Thursday. In doing so, the quote remains inside a one-month-old symmetrical triangle formation, suggesting further lackluster moves.
However, the cross-currency pair’s failures to rise past 200-SMA, not to forget sustained trading below a downward sloping trend line from June 23, keep the sellers hopeful.
Hence, a downside break of the stated triangle’s support, around 129.40, becomes more likely and can recall the 129.00 threshold to the chart.
During the quote’s further declines below 129.00, the previous month’s low near 128.60 and late March bottom surrounding 128.30 will be important to follow.
On the contrary, an upside break of the triangle’s resistance line, close to 130.15, needs validation from 200-SMA figures of 130.30 to convince EUR/JPY buyers to challenge a bit broader resistance line near 131.00.
In a case where the quote rallied beyond 131.00, July’s top of 132.43 should return to the charts.
EUR/JPY: Four-hour chart
Trend: Further weakness expected