EUR/JPY Price Analysis: Trapped in a sideways channel


  • EUR/JPY is stuck in a sideways channel with upside capped near 122.70. 
  • A channel breakdown looks likely and could yield deeper losses to 121.50.

EUR/JPY's ascent from the January 8 low of 120.17 seems to have run out of steam around 122.70 over the last three days.

The repeated rejection near 122.70 has taken the shape of a sideways channel pattern on the 4-hour chart.

A convincing move through the upper end of the channel, currently at 122.70 would signal a resumption of the uptrend and could fuel a rise to 123.40 (Januar y 2019 low).

On the flip side, a break below the channel support would expose the 4-hour chart support at 121.50

A channel breakdown looks likely as the daily chart is reporting a golden crossover or a bullish crossover of the 50- and 200-day averages - a big-time lagging and contrary indicator.

Also, the probability of the pair suffering a channel breakdown will rise if the 4-hour chart RSI dives out of an ascending trendline.

4-hour chart

Trend: Neutral-to-bearish'

Technical levels

EUR/JPY

Overview
Today last price 122.62
Today Daily Change 0.06
Today Daily Change % 0.05
Today daily open 122.56
 
Trends
Daily SMA20 121.64
Daily SMA50 121
Daily SMA100 120.03
Daily SMA200 120.94
 
Levels
Previous Daily High 122.72
Previous Daily Low 122.18
Previous Weekly High 121.85
Previous Weekly Low 120.17
Previous Monthly High 124.2
Previous Monthly Low 119.98
Daily Fibonacci 38.2% 122.52
Daily Fibonacci 61.8% 122.39
Daily Pivot Point S1 122.25
Daily Pivot Point S2 121.95
Daily Pivot Point S3 121.71
Daily Pivot Point R1 122.79
Daily Pivot Point R2 123.03
Daily Pivot Point R3 123.33

 

 

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