EUR/JPY Price Analysis: Drops below 134.00 on double-top bearish formation

EUR/JPY reverses from February 2018 levels, forms a bearish chart pattern on 1H.
200-HMA, weekly support line tests sellers, bulls need a daily closing beyond 134.00.

Anil Panchal FXStreet

EUR/JPY remains on the back foot around an intraday low of 133.74, down 0.10% on a day, ahead of Monday’s European session open. In doing so, the quote confirms doubt-top bearish chart formation amid downbeat MACD signals.

Given the overbought RSI conditions on the daily chart, as well as repeated failures to cross the 134.00 threshold on the daily closing, EUR/JPY sellers should remain hopeful and add to the positions on breaking the 133.60 support, comprising neckline of doubt-top.

Though, a clear downside past 133.60 will find it difficult to break the 133.20 support confluence including 200-HMA and one-week-old rising trend line, before dropping back towards the 133.00 round figure.

Meanwhile, recovery moves need a clear upside break of 134.00 to aim for the late 2017 tops near 134.40-45.

During the quote’s sustained run-up beyond 134.45, the 135.00 psychological magnet and multiple lows marked in early 2018 near 135.20 could entertain EUR/JPY bulls.

EUR/JPY hourly chart

Trend: Pullback expected

Additional important levels

Overview
Today last price	133.81
Today Daily Change	-0.10
Today Daily Change %	-0.07%
Today daily open	133.91

Trends
Daily SMA20	132.53
Daily SMA50	131.11
Daily SMA100	129.38
Daily SMA200	127.07

Levels
Previous Daily High	134.01
Previous Daily Low	133.61
Previous Weekly High	134.06
Previous Weekly Low	132.52
Previous Monthly High	132.37
Previous Monthly Low	129.57
Daily Fibonacci 38.2%	133.76
Daily Fibonacci 61.8%	133.86
Daily Pivot Point S1	133.68
Daily Pivot Point S2	133.45
Daily Pivot Point S3	133.28
Daily Pivot Point R1	134.08
Daily Pivot Point R2	134.24
Daily Pivot Point R3	134.47

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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