EUR/JPY Price Analysis: There is a strong Fibonacci confluence zone ahead
|- EUR/JPY is trading 0.64% higher as the EUR performs well on Monday.
- There is a strong resistance zone above the current price level at 122.00.
EUR/JPY 4-hour chart
EUR/JPY has pushed higher on the first trading day of the week and is one of the best performing FX pairs. The last 4-hour candle looks like it could be a rejection signal as its a shooting star. If the price does move higher, there is a key level close to the psychological 122.00 figure. The red rectangle area marks where the 50% Fibonacci retracement and golden 161.8% ratio extension meet. This could be a key area if the price ignores the bearish candle signal and moves higher.
The price has now made a higher low higher high pattern, so there could be another move higher coming soon. The 120.00 area was used as a nice support zone, and in the future, if there is to be a move lower, it could be used again.
The Relative Strength Index indicator is very close to the overbought area. This could mean there might be a small pullback, but the fact that there is still some space to the upside would be encouraging for the bulls. The MACD is also looking bullish as the histogram is green and the signal lines are above the mid-line.
The area to beat is the high on the chart of 124 43. If the resistance level is broken, then the uptrend could continue and the market could be looking for levels on the higher timeframes.
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Additional levels
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