EURJPY has been trading sideways, finding support around 134.50 and resistance near the 137.00 major psychological mark. The top of the range is still holding as a ceiling, possibly sending the pair back down to the bottom again.

However, the 100 SMA just crossed above the 200 SMA to confirm that the path of least resistance is to the upside or that there’s a chance the range resistance could break. If that happens, EURJPY could be in for a rally that’s the same height as the rectangle pattern or around 250 pips.

Stochastic hasn’t quite reached the oversold region but seems to be pulling higher to signal that buyers are eager to take over.

RSI, on the other hand, has plenty of room to slide before reflecting oversold conditions or exhaustion among sellers. This might be enough to take EURJPY to nearby support levels, including the dynamic support at the moving averages around the middle of the range.

There are no major reports due from the eurozone today, but euro traders might be keen on placing bets ahead of the ECB decision later in the week. No actual rate changes are eyed, but it’s worth noting that the central bank shifted to a less dovish stance in their earlier statement.

Retaining this optimistic view, even with the changes in geopolitics and economic outlook lately, could be enough to boost the shared currency. Traders might be anticipating a withdrawal of stimulus by the ECB soon, especially if strong data continue to come in.

Meanwhile, the yen tends to be on weaker footing on account of the BOJ’s willingness to pursue more easing measures in order to prop up the economy. However, risk-off flows might benefit the lower-yielding currency if geopolitical tensions worsen once more.