The EURJPY is getting closer to the 100 hour MA at the 101.54 area. The price has been below the MA level since April 27th (apart from a few stray bars at the beginning of May). A move above the MA should solicit more buying interest from those expecting more of a correction higher. Staying below, and the dip buyers will likely look to exit. It is decision time for the pair.
On a break higher, the 200 hour MA is at 102.28 and would be the next key target. Before that, look for the 101.98 to slow a quick move higher. I would expect sellers on the 1st test of the 200 hour MA.
On the downside, the 100 and 200 bar MA come in at the 101.22/26 area. (see chart below) Trend line support off the low comes in at the 101.05 currently (and moving higher). Stay above and the short term correction can continue.
The BOJ is tentatively scheduled to make an interest rate announcement tomorrow night (ET). Should the BOJ surprise with more bond buying, this could lead to a weaker Yen (higher EURJPY). Speculation between now and then, may be on the side of caution for further stimulus. As a result and this could help the pair move higher.