EUR/JPY Price Analysis: Drops below 134.00 on double-top bearish formation
|- EUR/JPY reverses from February 2018 levels, forms a bearish chart pattern on 1H.
- 200-HMA, weekly support line tests sellers, bulls need a daily closing beyond 134.00.
EUR/JPY remains on the back foot around an intraday low of 133.74, down 0.10% on a day, ahead of Monday’s European session open. In doing so, the quote confirms doubt-top bearish chart formation amid downbeat MACD signals.
Given the overbought RSI conditions on the daily chart, as well as repeated failures to cross the 134.00 threshold on the daily closing, EUR/JPY sellers should remain hopeful and add to the positions on breaking the 133.60 support, comprising neckline of doubt-top.
Though, a clear downside past 133.60 will find it difficult to break the 133.20 support confluence including 200-HMA and one-week-old rising trend line, before dropping back towards the 133.00 round figure.
Meanwhile, recovery moves need a clear upside break of 134.00 to aim for the late 2017 tops near 134.40-45.
During the quote’s sustained run-up beyond 134.45, the 135.00 psychological magnet and multiple lows marked in early 2018 near 135.20 could entertain EUR/JPY bulls.
EUR/JPY hourly chart
Trend: Pullback expected
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