EUR/JPY analysis: poised to break below 120.00
|EUR/JPY Current price: 120.89
The EUR/JPY pair plunged to 120.53 and held a handful of pips below the 121.00 by the end of the US session, as the Japanese yen was among the best performers following Trumps comments about dollar's strength. "it's killing us," Trump said in an interview. Despite off their lows, European equities close in the red, whilst Wall Street is poised to do the same, keeping the JPY on demand. From a technical point of view, the EUR/JPY pair short term picture is bearish, as an early attempt to recover stalled around the critical 121.40 Fibonacci resistance. In the 1 hour chart, technical indicators stand within bearish territory with no clear directional strength, but the 100 SMA maintains a sharp bearish slope above the current level, nearing the mentioned Fibonacci level. In the 4 hours chart, the 100 SMA has extended its decline and now converges with the 200 SMA in the 122.30 region, whilst technical indicators are unable to recover from near oversold readings, maintaining the risk towards the downside. The daily low has been set at 120.53, the level to break to confirm an extension sub-120.00.
Support levels: 120.50 120.10 119.65
Resistance levels: 120.95 121.40 121.90
View Live Chart for the EUR/JPY
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.