EUR/JPY Price Analysis: Sellers look for entry below 61.8% Fibonacci retracement
|- EUR/JPY keeps recovery moves from 200-bar SMA to waver around the intraday high of 125.74.
- Multiple bounces off the key Fibonacci retracement level, failures to stay under important SMA favor the buyers.
- Bulls aim for monthly top, sellers can have July 28 peak as additional support.
EUR/JPY picks up bids around 125.66, up 0.2% daily, while heading into the European session on Friday. In doing so, the Euro cross trims the previous day’s fall from the weekly top while bouncing off 200-bar SMA.
While observing the quote’s multiple pullbacks from 61.8% Fibonacci retracement of July 24 to September 01 upside, coupled with normal RSI conditions, the EUR/JPY prices are likely to keep the upside momentum.
As a result, buyers can eye for the fresh monthly peak if manage to cross the immediate resistances of 126.46 and 126.75, comprising the weekly top and August 13 top respectively.
During the pair’s run-up beyond 127.07, March 2019 high if 127.50 could lure the bulls.
On the contrary, a downside break of 200-bar SMA, at 125.34 now, will attack 50% and 61.8% Fibonacci retracement levels, near 124.95 and 124.45 in that order.
Though, any further declines past-124.45 will be questioned by the late-July high near 124.00 ahead of the July 24 low of 122.84.
EUR/JPY four-hour chart
Trend: Bullish
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.