EUR/JPY Price Analysis: Rejected at 123.15, remains stuck in a sideways channel
|- EUR/JPY's hourly chart shows a sideways channel pattern.
- A range breakdown would imply a continuation of the sell-off from recent highs near 126.00.
EUR/JPY is trading near 123.05 at press time, representing marginal gains on the day, having faced rejection at 123.15 a few minutes ago.
The pair has carved out a sideways channel on the hourly chart with the upper end and lower end at 123.20 and 122.57, respectively.
A breakout would open the doors for 123.83 (target as per the measured move method). However, the bias would remain bearish as long as the pair holds below 124.41 – the former support-turned-resistance of the head-and-shoulders (H&S) breakdown confirmed on Sept. 16.
Alternatively, a range breakdown, if confirmed, would reinforce the bearish view put forward by the H&S breakdown and expose support at 122.00 (100-week simple moving average).
Hourly chart
Trend: Bearish below 122.57
Technical levels
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.