EUR/JPY Price Analysis: The pair gets a reality check at 122.00
- EUR/JPY is trading 0.44% higher on Monday as the euro is one of the top performers on the day.
- The price has formed a rising wedge formation on the 4-hour chart.
EUR/JPY 4-hour chart
The euro is the top-performing currency in the G6 on Monday as risk sentiment improves and the dollar weakens. The pair has been grinding higher all session but over the last couple of hours and especially in the US session the price has dropped back.
The price has converged into a rising wedge formation and a break of the chart pattern could help determine the future direction of the pair. The price stopped at the key resistance zone of 1.22 as it has done twice on the chart already.
The indicators are showing a mixed picture at the moment. The Relative Strength Index is currently sloping lower and pulling away from the overbought zone. While the MACD is still in the green with the signal lines under the mid-point.
The data in the US has been encouraging as the ISM non-manufacturing print exceeded analyst expectations. Later in the week, the market will get the latest initial jobless claims and updates about the COVID-19 pandemic if the news continues to improve the pair could break to the upside.
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Additional levels
Author
Rajan Dhall, MSTA
FX Daily
Rajan Dhall is an experienced market analyst, who has been trading professionally since 2007 managing various funds producing exceptional returns.
