EUR/JPY analysis: poised to break below 120.00

Valeria Bednarik FXStreet

EUR/JPY Current price: 120.89

The EUR/JPY pair plunged to 120.53 and held a handful of pips below the 121.00 by the end of the US session, as the Japanese yen was among the best performers following Trumps comments about dollar's strength. "it's killing us," Trump said in an interview. Despite off their lows, European equities close in the red, whilst Wall Street is poised to do the same, keeping the JPY on demand. From a technical point of view, the EUR/JPY pair short term picture is bearish, as an early attempt to recover stalled around the critical 121.40 Fibonacci resistance. In the 1 hour chart, technical indicators stand within bearish territory with no clear directional strength, but the 100 SMA maintains a sharp bearish slope above the current level, nearing the mentioned Fibonacci level. In the 4 hours chart, the 100 SMA has extended its decline and now converges with the 200 SMA in the 122.30 region, whilst technical indicators are unable to recover from near oversold readings, maintaining the risk towards the downside. The daily low has been set at 120.53, the level to break to confirm an extension sub-120.00.

Support levels: 120.50 120.10 119.65

Resistance levels: 120.95 121.40 121.90

View Live Chart for the EUR/JPY

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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