EURJPY recently fell through its rising trend line on the 4-hour chart and looks prime for a retest of the broken support before heading further south.

Applying the Fib tool on the breakout move shows that the 61.8% level is closest to the trend line around 129.75, which might be enough to keep gains in check. A shallow pullback could already find sellers at the current 50% level near the 129.50 minor psychological mark, which lines up with the 100 SMA dynamic inflection point.

On the subject of moving averages, the 100 SMA is above the 200 SMA to indicate that the path of least resistance is to the upside or that the climb might still resume. Then again, the gap between the indicators has narrowed to reflect weakening bullish momentum and a potential bearish crossover that would draw more sellers in.

Stochastic has already reached the overbought zone to signal exhaustion among buyers and a possible return in selling pressure. RSI has some room to climb before reaching the overbought region, so buyers could stay in control for a bit longer.

There are no major reports due from both Japan and the eurozone for the rest of the week, so price action could hinge on sentiment. Risk appetite appears to have returned following the refloating of the cargo blockage in the Suez Canal, which might be bearish for the safe-haven yen.

A return in risk-off flows, on the other hand, could benefit the lower-yielding Japanese currency especially since the market focus is returning to the surge in COVID-19 cases.

Mid-tier reports might have a stronger than usual impact on the shared currency since liquidity would be lower around the Holy Week holidays later in the week. This is also around the end of the week, month, and quarter so profit-taking activity could lead to strong price moves.