EURJPY is trending higher on its 4-hour time frame, forming higher lows and higher highs connected by a rising channel. Price looks ready to test support, which lines up with several inflection points.

The bottom of the channel is around the 137.00 major psychological mark and is also at the 61.8% Fibonacci retracement. This also coincides with a former resistance zone that might hold as support, as well as the 100 SMA dynamic inflection point.

The 100 SMA is above the 200 SMA to confirm that the path of least resistance is to the upside or that support is more likely to hold than to break. However, the gap between the indicators is narrowing to reflect slowing bullish momentum.

A break below support could set off a reversal from the uptrend, but oscillators are also hinting at a continuation of the climb.

Stochastic has some room to move south before reflecting exhaustion among sellers, so the correction could keep going until the oscillator pulls higher. Similarly RSI has a bit more ground to cover before reaching the oversold area.

If the channel support holds, EURJPY could make its way back up to the swing high around the 140.00 handle or the top of the channel.

The BOJ decision might be a big catalyst for a move on this pair, as the policymakers could keep jawboning their currency or take actual measures to keep the yen weak.

Recall that the central bank already announced unlimited JGB purchases as a means to drag the yen lower against its peers, citing that they continue to monitor FX moves closely.

However, a pickup in risk aversion might still benefit the yen, especially if the uncertainty stems from worsening tensions between Russia and Ukraine. After all, the European region stands to face the most damage from this conflict, which might delay ECB stimulus withdrawal plans.