• EUR/JPY consolidates in the range of 136.50-138.00 from the last two trading weeks.
• Momentum oscillator, RSI seeks a trigger for a decisive move.
• The 200-EMA is modestly advancing higher but lacks conviction.

The EUR/JPY pair has surrendered half of its gains recorded in the first two hours of the early Asian session. Earlier, the cross has struggled to sustain above the round level figure of 138.00 but firmer price action at the upper boundary of the consolidation is underpinning euro bulls.

On an hourly scale, the consolidation phase is ongoing after a strong upside move from April 27 low at 134.78. The consolidation zone is marked from April 28 high at 138.00 to April 29 low at 136.50. The asset prices are overlapping to 20-period Exponential Moving Average (EMA) at 137.66, which signals a consolidation ahead. However, the 200-EMA at 137.20 is scaling modestly higher.

Meanwhile, the Relative Strength Index (RSI) is oscillating in a range of 40.00-60.00 for a longer period, which seeks a trigger for a decisive move.

Should the asset overstep the previous week’s high at 138.16, euro bulls will gain momentum and will drive the asset towards the April 21 low at 138.81. A breach of the latter will send the asset towards the psychological level resistance of 140.00

On the flip side, yen bulls could dictate the asset if it tumbles below April 29 low at 136.50. This will drag the asset towards April 28 low at 135.44, followed by April 27 low at 134.78.

EUR/JPY hourly chart