• EUR/JPY prints four-day uptrend inside a bearish chart pattern.
• MACD signals also hint at the pair’s weakness.
• 200-SMA adds to the downside filters, bulls have a bumpy road to the north.

EUR/JPY struggles to justify the bounce off 200-SMA despite printing mild gains around 129.75 heading into Wednesday’s European session.

The reason could be linked to the cross-currency pair’s failures to defy a one-week-old rising wedge bearish chart pattern, as well as an impending bear cross on the MACD.

It should be noted, however, that the EUR/JPY sellers will need validation from the 200-SMA level of 129.55 to retake control.

Following that, early March’s low near 127.30 may entertain the pair bears before directing them to the theoretical target of 123.50.

Alternatively, an upside break of the stated wedge, near 130.50 at the latest, will escalate the EUR/JPY pair’s run-up towards the mid-February high of 131.90.

In a case where EUR/JPY bulls keep reins past 131.90, the 132.00 threshold and February 2022 peak of 133.15 will be in focus.

Overall, EUR/JPY buyers seem to have tired off late but the fresh selling will need confirmation from the 200-SMA.

EUR/JPY: Four-hour chart

Trend: Fresh declines expected