Bull needs to retake the 20-day, further downside on the horizon

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• EUR/JPY advanced towards 158.15, setting a 0.40% weekly gain.
• The cross was rejected by the 20-day SMA the whole week.
• The daily charts flash signals of exhaustion.

At the end of the week, the EUR/JPY cross advanced to the 158.15 area, seeing 0.40% daily and weekly gains.

The daily charts suggest a neutral to bullish outlook for the cross, as the EUR/JPY’s bulls were constantly rejected by the 20-day Simple Moving Average (SMA) of 158.30 since Monday. In that sense, bulls are starting to lose steam as the Relative Strength Index (RSI) has a positive slope slightly above its midline, while the Moving Average Convergence (MACD) exhibits red bars.

On the other hand, the pair above the 100 and 200-day SMAs suggest that the bulls are comfortably in command over the bears on the bigger picture. If the bulls fail to retake the 20-day SMA, the 157.00 zone is open for a retest, followed by the 156.00 and 155.00 areas. Above the 20-day average, the resistance line up at the cycle’s peak at 158.00, followed by 158.50 and 159.00.

EUR/JPY Daily Chart