EUR/JPY Price Analysis: Oversold RSI keeps short-term falling wedge intact

EUR/JPY trades near the lowest in three months.
A sustained break of the latest low can recall November month bottom.
A 200-bar SMA will check buyers following the confirmation of a bullish pattern.

Anil Panchal FXStreet

EUR/JPY seesaws around the fresh three-month low of 119.40, currently near 119.53, by the press time of early Thursday.

The pair recently dropped below an upward sloping trend line since mid-October but is struggling to defy the short-term bullish formation amid oversold RSI conditions.

As a result, sellers will wait for the quote to trade below the latest bottom near 119.40 to take aim at November month low of 119.25, October 15 trough of 119.12 and 119.00 round-figure.

Should there be sustained trading below 119.00, early-October 2019 high near 118.15/10 could please the bears.

Alternatively, 120.00 can check the pair’s pullback from multi-day low ahead of pushing the quote towards the formation’s resistance line, currently around 120.45.

Even if the break of 120.45 will theoretically confirm the pair’s run-up beyond 122.00, 200-bar SMA near 121.10 could question the optimists.

EUR/JPY four-hour chart

Trend: Pullback expected

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Additional important levels

Overview
Today last price	119.55
Today Daily Change	-16 pips
Today Daily Change %	-0.13%
Today daily open	119.71

Trends
Daily SMA20	120.75
Daily SMA50	121.2
Daily SMA100	120.52
Daily SMA200	120.5

Levels
Previous Daily High	120.3
Previous Daily Low	119.62
Previous Weekly High	121.15
Previous Weekly Low	119.92
Previous Monthly High	122.88
Previous Monthly Low	119.78
Daily Fibonacci 38.2%	119.88
Daily Fibonacci 61.8%	120.04
Daily Pivot Point S1	119.45
Daily Pivot Point S2	119.19
Daily Pivot Point S3	118.76
Daily Pivot Point R1	120.14
Daily Pivot Point R2	120.57
Daily Pivot Point R3	120.83

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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