• EUR/JPY retreats from 21-day EMA surrounding weekly top.
• Bearish moving average cross-over, bumpy road to the north challenge buyers.
• Six-week-old ascending trend line offers key support ahead of late 2021 bottom.
• ECB February Preview: Euro bulls hope for a hawkish ECB on hot EU inflation

EUR/JPY struggles for clear direction around the weekly top, recently easing to 129.35 ahead of Thursday’s European session.

The cross-currency pair justifies the market’s cautious sentiment ahead of the European Central Bank (ECB) monetary policy announcements while stepping back from the 21-day EMA amid bearish MACD signals.

It’s worth noting that the 50-day EMA and 200-day EMA, around 129.55-60, add to the upside filters beyond the 21-day EMA level of 129.45.

Given the downbeat MACD signals and multiple moving averages challenging the EUR/JPY bulls, the pair is likely to remain weak unless crossing the 129.60 level.

Even if the quote rises past 129.60, the 130.00 threshold and a descending resistance line from late October, near 130.95, will challenge the pair’s further upside.

Alternatively, the 50-day EMA poses a bearish break below the 200-day EMA to portray a death-cross, which in turn will please sellers to challenge the short-term support line near 128.45 if confirmed.

Following that, the 128.00 round figure and December 2021 low surrounding 127.40 will be crucial to watch for EUR/JPY sellers.

EUR/JPY: Daily chart

Trend: Further weakness expected