Since the beginning of the year the currency pair gained over 8.0% although last week fell more than 0.5% but is in a bullish phase since late April.
Last week the EURJPY went back and forward with a wide range but closed in the red, in the middle of the weekly range, in addition the currency pair managed to close within the previous week range, which suggests being clearly neutral, neither side is showing control.
The currency pair is now trading above the 10, the 50 and the 200-week moving averages that should provide a strong dynamic support.
The stochastic is showing an extreme overbought market and is beginning to display lack of momentum although is above the 50 mid line.
Expecting a downward move to a Fibonacci retracement at 129.789 on a bounce from 2017 high at 134.404 (scenario 1) although a break below the previous week low at 131.743 could drag down the currency pair to a weekly support at 128.576 (scenario 2).