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  • EURJPY rebounds off 155.15

  • Immediate resistance at downtrend line

  • RSI and MACD look negative

EURJPY held losses for the second week in a row, dropping towards the 155.15 support, which stands slightly above the more-than-seven-month low.

Technically, the price could lose some ground in the short term as the RSI is changing direction to the downside and towards its 30 mark, while the MACD is still standing beneath its trigger and zero lines. Moreover, the 50- and the 200-day simple moving averages (SMAs) posted a bearish crossover.

A rebound on the 155.15 support could take the pair towards the short-term descending trend line at 158.00, ahead of the 159.30-160.05 restrictive region, which encapsulates the 23.6% Fibonacci retracement level of the down leg from 175.37 to 154.40, as well as the 20-day SMA.

Alternatively, a decline under 155.15 could meet a strong barrier near 154.40; even lower, 153.20 may halt bearish actions, taken from the trough of December 2023.

In the medium-term picture, EURJPY is gently pointing up over the past, framing a potential upside correction. A strong rally above the 200-day SMA at 164.00 would extend the upward pattern, making the outlook more bullish.

In brief, USDJPY could lose further steam in the short term if there is a plunge below 154.50, while in the long term, the pair continues to hold a positive outlook.