The FX pair EURJPY is at a crucial crossroad that could decide the longer-term trend. Medium-term trend is currently bearish as price is below the Ichimoku cloud resistance and is making lower lows and lower highs. Short-term trend is neutral and this pair is challenging important short-term resistance that could change trend to bullish. The 139 price level is an important resistance level that if broken we could see a swift move towards the next important intermediate-term resistance at 140.
As long as this pair is below 139 I believe that short positions should be preferred. If prices get rejected at the resistance level of 139 we should expect a move towards 137.50 at least. The Ichimoku cloud analysis tells us that trend is not clear and that we are closer to breaking short-term resistance.
The weekly chart above shows us that we are touching or very close to touch the Ichimoku cloud support. This is a good sign for bulls as this level is strong support. Bulls want first to break above 139 resistance and then above the green trend line resistance at 140-140.50. Breaking the 2nd resistance will be a very bullish sign that will increase the chances of new highs. However bulls should be very cautious if support at 137 is broken downwards as this could mean that a new downward leg has started targeting 132-134.
As always, thank you for taking the time to catch up on my thinking.