EUR/JPY Technical: Bulls are in hesitant mode again as ECB looms

<p><a href="https://api.addthis.com/oexchange/0.8/forward/facebook/offer?url=https%3A%2F%2Fwww.marketpulse.com%2Fforex%2Feur-jpy-technical-bulls-are-in-hesitant-mode-again-as-ecb-looms%2Fkwong&amp;pubid=ra-525512e4690e068c&amp;title=Marketpulse%20%7C%20Home&amp;ct=1" target="_blank"><img src="https://cache.addthiscdn.com/icons/v3/thumbs/32×32/facebook.png" border="0" alt="Facebook" /></a><a href="https://api.addthis.com/oexchange/0.8/forward/twitter/offer?url=https%3A%2F%2Fwww.marketpulse.com%2Fforex%2Feur-jpy-technical-bulls-are-in-hesitant-mode-again-as-ecb-looms%2Fkwong&amp;pubid=ra-525512e4690e068c&amp;title=Marketpulse%20%7C%20Home&amp;ct=1" target="_blank"><img src="https://cache.addthiscdn.com/icons/v3/thumbs/32×32/twitter.png" border="0" alt="Twitter" /></a><a href="https://api.addthis.com/oexchange/0.8/forward/email/offer?url=https%3A%2F%2Fwww.marketpulse.com%2Fforex%2Feur-jpy-technical-bulls-are-in-hesitant-mode-again-as-ecb-looms%2Fkwong&amp;pubid=ra-525512e4690e068c&amp;title=Marketpulse%20%7C%20Home&amp;ct=1" target="_blank"><img src="https://cache.addthiscdn.com/icons/v3/thumbs/32×32/email.png" border="0" alt="Email" /></a></p><p>This is a follow-up analysis of our prior report, <em>“EUR/JPY Technical: Bulls may have reached a key bearish reversal zone”</em> published on 18 September 2023. Click <a href="https://marketpulse.com/forex/eur-jpy-technical-bulls-may-have-reached-a-key-bearish-reversal-zone/kwong">here</a> for a recap.</p>
<p>The price actions of the <a href="https://www.oanda.com/sg-en/trading/forex/">EUR/JPY</a> have shaped the expected minor slide toward the highlighted support of 155.90 as mentioned in our previous report. The cross pair printed an intraday low of 154.42 on 3 October 2023 before it reverted to a choppy up move to retest the 159.80 major resistance (31 August 2023 swing high & February/May 2008 congestion area) in the past three weeks.</p>
<h2><strong>The bears seem to be lurking around the corner</strong></h2>
<p><a href="https://www.marketpulse.com/wp-content/uploads/2023/10/EURJPY_2023-10-26_19-12-20.png"><img loading="lazy" class="alignnone wp-image-808363 size-large" src="https://www.marketpulse.com/wp-content/uploads/2023/10/EURJPY_2023-10-26_19-12-20-1024×589.png" alt="" width="700" height="403" srcset="https://www.marketpulse.com/wp-content/uploads/2023/10/EURJPY_2023-10-26_19-12-20-1024×589.png 1024w, https://www.marketpulse.com/wp-content/uploads/2023/10/EURJPY_2023-10-26_19-12-20-300×173.png 300w, https://www.marketpulse.com/wp-content/uploads/2023/10/EURJPY_2023-10-26_19-12-20-768×442.png 768w, https://www.marketpulse.com/wp-content/uploads/2023/10/EURJPY_2023-10-26_19-12-20.png 1514w" sizes="(max-width: 700px) 100vw, 700px" /></a></p>
<p>Fig 1: EUR/JPY medium-term trend as of 26 Oct 2023 (Source: TradingView, click to enlarge chart)</p>
<p><a href="https://www.marketpulse.com/wp-content/uploads/2023/10/EURJPY_2023-10-26_19-32-40.png"><img loading="lazy" class="alignnone wp-image-808364 size-large" src="https://www.marketpulse.com/wp-content/uploads/2023/10/EURJPY_2023-10-26_19-32-40-1024×589.png" alt="" width="700" height="403" srcset="https://www.marketpulse.com/wp-content/uploads/2023/10/EURJPY_2023-10-26_19-32-40-1024×589.png 1024w, https://www.marketpulse.com/wp-content/uploads/2023/10/EURJPY_2023-10-26_19-32-40-300×173.png 300w, https://www.marketpulse.com/wp-content/uploads/2023/10/EURJPY_2023-10-26_19-32-40-768×442.png 768w, https://www.marketpulse.com/wp-content/uploads/2023/10/EURJPY_2023-10-26_19-32-40.png 1514w" sizes="(max-width: 700px) 100vw, 700px" /></a></p>
<p>Fig 2: EUR/JPY minor short-term trend as of 26 Oct 2023 (Source: TradingView, click to enlarge chart)</p>
<p>Right now, the current key technical elements are showing potential signs of a bearish momentum resurgence at least in the short-term as ECB monetary policy decision looms.</p>
<p>Firstly, the daily RSI momentum indicator has staged a negative reaction from a parallel resistance at the 60 level on Tuesday, 24 October which suggests a lack of bullish momentum follow-through for the recent up move from the 3 October 2023 low of 154.42 (see figure 1).</p>
<p>Secondly, on the shorter time frame 1-hour chart, the price actions of the EUR/JPY have just staged a bearish breakdown from the minor ascending channel support in place since the 4 October 2023 low coupled with a bearish momentum reading from the 1-hour RSI as it retreated below 50 level and has not hit an extreme oversold level yet (see figure 2).</p>
<p>Watch the 158.95 key short-term pivotal resistance for a potential slide towards the next intermediate support zone at 157.10/156.80 and a break below 156.80 may a revisit of 155.80 next.</p>
<p>On the other hand, a clearance above 158.95 invalidates the bearish move for a probe on the 159.80 major resistance again.</p>