You are here: Home > articles > Forex > Technical Analysis – EURJPY bulls become cautious as pair eyes 121.00 for more downside
Technical Analysis – EURJPY bulls become cautious as pair eyes 121.00 for more downside
December 20, 2019 9:26 amVideo
Latest News
- Trading Signals for GOLD (XAU/USD) for April 19-22, 2024: sell below $2,395 (+2/8 Murray – overbought) April 19, 2024
- USD/JPY: Simple Trading tips for novice traders on April 19th (US session) April 19, 2024
- GBP/USD: Simple trading tips for novice traders on April 19th (US session) April 19, 2024
- EUR/USD: Simple trading tips for novice traders on April 19th (US session) April 19, 2024
- GBP/USD: trading plan for the US session on April 19th (analysis of morning deals). The pound is trying to regain its advantage April 19, 2024
- EUR/USD: trading plan for the US session on April 19th (analysis of morning deals). The euro compensated for the losses April 19, 2024
- Storm in a teacup: EUR/USD analysis April 19, 2024
- Video market update for April 19, 2024 April 19, 2024
- Eurozone PMIs eyed as euro’s focus turns to rate cuts beyond June – Preview April 19, 2024
- Technical Analysis – NZDUSD falls to fresh 5-month low April 19, 2024
- EUR/USD. April 19th. Bostic, Fed: the rate cut will happen at the end of the year April 19, 2024
- Forecast for GBP/USD pair on April 19, 2024 April 19, 2024
- Weekly Forex Outlook: 14/04/2024 – US GDP and BoJ decision on top of next week’s agenda April 19, 2024
- Market Comment – Safe havens jump as Israel retaliates against Iran April 19, 2024
- Technical Analysis – USDCAD puts rally on hold near 1.3800 caution zone April 19, 2024
- USD/JPY: trading tips for beginners for European session on April 19 April 19, 2024
- GBP/USD: trading tips for beginners for European session on April 19 April 19, 2024
- EUR/USD: trading tips for beginners for European session on April 19 April 19, 2024
- Supercharged US dollar turns to GDP growth data – Preview April 19, 2024
- Technical Analysis – USDCHF remains in bullish structure April 19, 2024
EURJPY managed to run above the 200-day simple moving average (SMA) for the first time in more than a year and formed another higher high at 122.63 last Friday.
The market, however, soon reached overbought conditions as reflected by the RSI, which is moving towards its 50 neutral mark after hitting the 70 level. The price reversal near the upper Bollinger band and the doji created at the top of the uptrend add to the short-term discouraging signals.
Still, traders will be waiting for a closing price below the 200-day SMA and particularly below the 121.00 level, where the 23.6% Fibonacci of the upleg from 115.85 to 122.63 is located, before becoming more cautious on the positive outlook. Such a move could potentially enhance the selling pressure probably towards the 38.2% Fibonacci support mark of 120.00, a break of which could see a test of the 50% Fibonacci of 119.50 and the bottom of the Ichimoku cloud.
In case of a rebound, the bulls should reclaim the 122.00 number and rally above the 122.63 peak to extend the rally up to the 123.30 resistance. Surpassing the 124.30 former support area too, the next stop could be somewhere near 125.00.
Meanwhile, the medium-term outlook remains positive given the higher highs and higher lows since the end of August and the rising 50-day SMA. A break below 120.00 would put the market back on the neutral path.
Summarizing, EURJPY is experiencing downside pressures though only a decisive close below 121.00 would discourage short-term buyers, while a decline below 120.00 is required to turn medium-term traders cautious as well.
Related Posts: