EUR/JPY Price Analysis: Sellers can remain hopeful below 123.50
|- EUR/JPY buyers attack 50-bar SMA after bouncing off the lowest since July 20.
- Short-term horizontal resistance, a falling trend line from September 10 adds to the upside barriers.
- Normal RSI conditions favor further recovery but bulls are probed by the key upside barriers.
- Sellers may look for entries below the monthly low.
EUR/JPY registers a little movement while taking rounds to the intraday high of 123.17 during early Tuesday. In doing so, the pair confronts 50-bar SMA amid normal RSI conditions.
Considering Monday’s U-turn from the multi-day low, EUR/JPY buyers are likely to cross the immediate SMA resistance around 123.15/20.
Though, a horizontal area since September 17, near 123.25/35, followed by a 13-day-old descending trend line, currently around 123.50, will probe the bulls afterward.
In a case where EUR/JPY manages to cross 123.50, it’s the run-up to September 18 high close to 124.30 can’t be ruled out.
Alternatively, the 123.0 threshold and 122.60 may offer nearby supports to the pair during its fresh downside.
It should, however, be noted that the sellers will remain cautious unless witnessing a fresh monthly low under 122.37. In doing so, the early July high near 122.00 could be on their radars.
EUR/JPY four-hour chart
Trend: Bearish
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