EUR/JPY analysis: further declines expected below 120.60

EUR/JPY Current price: 121.01

The Japanese yen closed the week with a strong note against all of its major rivals, as US Treasury yields closed the week in the red, following  Fed's dovish stance. The 10-year note benchmark settled at 2.50%, down from the 2.58%  reached ahead of the event. The EUR/JPY pair traded as low as 120.80, and settled around the 121.00 figure, ending the day below its 100 DMA, which heads north around 121.30, right below a major Fibonacci level at 121.40. In the daily chart, technical indicators have retreated sharply from oversold readings, maintaining strong bearish slopes and challenging their mid-lines, favoring a downward extension on a break below 120.60, the immediate support. In the 4 hours chart, technical indicators have resumed their declines within bearish territory, following a limited upward correction, with the RSI heading south around 38 and anticipating some further slides. If this latest time frame, the price is a few pips above the 100 SMA that crossed above the 200 SMA, both within a 20 pips range, and around the mentioned 120.60 support.

Support levels: 120.60 120.15 119.70

Resistance levels: 121.40 121.85 122.30

View Live Chart for the EUR/JPY

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