EUR/JPY Price Analysis: Consolidates in a pennant pattern

EUR/JPY is trapped in a pennant pattern, as seen on the 4-hour chart.
A breakout would expose overhead resistance at 124.90.

Omkar Godbole FXStreet Contributor

EUR/JPY has carved out a contracting triangle or pennant pattern on the 4-hour chart.

A breakout, if confirmed, would signal a resumption of the rally from the July 10 low of 120.27 and open the doors for 124.64 (200-week simple moving average), above which a major resistance at 124.90 (August 2018 low).

Alternatively, a pennant breakdown would imply bearish reversal and shift risk in favor of a drop to the ascending 50-day SMA, currently at 121.31.

The pair is currently trading largely unchanged on the day at 123.70. The pennant resistance is located at 123.78 while support is seen at 123.11.

4-hour chart

Trend: Neutral

Technical levels

EUR/JPY

Overview
Today last price	123.71
Today Daily Change	-0.01
Today Daily Change %	-0.01
Today daily open	123.72

Trends
Daily SMA20	122.31
Daily SMA50	121.21
Daily SMA100	119.35
Daily SMA200	119.99

Levels
Previous Daily High	123.79
Previous Daily Low	123.02
Previous Weekly High	124.29
Previous Weekly Low	122.2
Previous Monthly High	124.43
Previous Monthly Low	119.32
Daily Fibonacci 38.2%	123.5
Daily Fibonacci 61.8%	123.31
Daily Pivot Point S1	123.22
Daily Pivot Point S2	122.73
Daily Pivot Point S3	122.45
Daily Pivot Point R1	124
Daily Pivot Point R2	124.28
Daily Pivot Point R3	124.78

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

EUR/USD treads water above 1.1850 amid thin trading

EUR/USD stays defensive but holds 1.1850 amid quiet markets in the European hours on Monday. The US Dollar is struggling for direction due to thin liquidity conditions as US markets are closed in observance of Presidents' Day.

GBP/USD flat lines as traders await key UK and US macro data

GBP/USD kicks off a new week on a subdued note and oscillates in a narrow range near 1.365 in Monday's European trading. The mixed fundamental backdrop warrants some caution for aggressive traders as the market focus now shifts to this week's important releases from the UK and the US.

Gold slides below $5,000 amid USD uptick and positive risk tone; downside seems limited

Gold attracts fresh sellers at the start of a new week and reverses a part of Friday's strong move up of over $150 from sub-$4,900 levels. The commodity slides back below the $5,000 psychological mark during the Asian session, though the downside potential seems limited amid a combination of supporting factors.

Bitcoin, Ethereum and Ripple consolidate within key ranges as selling pressure eases

Bitcoin and Ethereum prices have been trading sideways within key ranges following the massive correction. Meanwhile, XRP recovers slightly, breaking above the key resistance zone. The top three cryptocurrencies hint at a potential short-term recovery, with momentum indicators showing fading bearish signs.

Global inflation watch: Signs of cooling services inflation

Realized inflation landed close to expectations in January, as negative base effects weighed on the annual rates. Remaining sticky inflation is largely explained by services, while tariff-driven goods inflation remains limited even in the US.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.