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EUR/JPY technical analysis: U-Turn drives Euro below 121.00 handle against Yen

  • EUR/JPY has a sharp reversal down move this Tuesday.
  • More weakness is expected below the 120.85 support. 
 

EUR/JPY daily chart

 
EUR/JPY is trading in a downtrend below the 200-day simple moving average (DMA). However, in October the market rose sharply and is now hanging in a range near the 121.00 handle.
 

EUR/JPY four-hour chart

 
On the four-hour chart, the spot is trading above its100 and 200 SMAs, suggesting bullish momentum in the medium term. However, the market is trapped in a range and the bulls would need to overcome the 121.20 and 121.50 resistance on a daily basis in order to resume the bulls trend. 
 

EUR/JPY 30-minute chart

 
The market had a sharp reversal down this Tuesday. EUR/JPY is under pressure below the 120.85 resistance and the main SMAs. Further weakness can be expected towards the 120.45 and 120.10 levels. 
 

Additional key levels

 

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