- 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.
|Today last price||122.62|
|Today Daily Change||0.06|
|Today Daily Change %||0.05|
|Today daily open||122.56|
|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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