EUR/JPY Price Analysis: Eyeing a short-term bullish break through 120.60 confluence barrier

EUR/JPY regains traction and climbs back closer to a key confluence resistance.
A sustained break below 120.00 needed to confirm a fresh near-term bearish break.

Haresh Menghani FXStreet

The EUR/JPY cross reversed an early dip to sub-120.00 level and regained positive traction for the second consecutive session on Thursday. The momentum has now lifted the cross back towards an important confluence resistance, around the 120.60 region.

The mentioned barrier comprises of 100-day SMA, 50% Fibonacci level of the 122.88-118.46 down leg and a five-month-old ascending trend-line support breakpoint. A sustained break through might be seen as a key trigger for bulls and pave the way for additional gains.

The cross then might accelerate the positive move towards reclaiming the 121.00 round-figure mark – coinciding with 61.8% Fibo. level – before eventually darting to test its next major hurdle near the 121.35-40 supply zone, or monthly tops set last week.

Meanwhile, a rejection from the current resistance zone, leading to a subsequent weakness below the key 120.00 psychological mark might shift the near-term bias back in favour of bearish traders and drag the cross further towards the 119.00 round-figure mark.

EUR/JPY daily chart

Technical levels to watch

EUR/JPY

Overview
Today last price	120.61
Today Daily Change	0.39
Today Daily Change %	0.32
Today daily open	120.22

Trends
Daily SMA20	120.03
Daily SMA50	120.92
Daily SMA100	120.74
Daily SMA200	120.34

Levels
Previous Daily High	120.59
Previous Daily Low	119.7
Previous Weekly High	121.4
Previous Weekly Low	118.46
Previous Monthly High	122.88
Previous Monthly Low	119.78
Daily Fibonacci 38.2%	120.25
Daily Fibonacci 61.8%	120.04
Daily Pivot Point S1	119.75
Daily Pivot Point S2	119.28
Daily Pivot Point S3	118.86
Daily Pivot Point R1	120.64
Daily Pivot Point R2	121.06
Daily Pivot Point R3	121.53

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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