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


Today last price 122.62
Today Daily Change 0.06
Today Daily Change % 0.05
Today daily open 122.56
Daily SMA20 121.64
Daily SMA50 121
Daily SMA100 120.03
Daily SMA200 120.94
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



Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD hits two-month lows amid USD strength

EUR/USD has pared its gains that followed upbeat preliminary PMIs for Germany came out above expectations, pointing to a recovery. The USD is advancing amid fears of the coronavirus.


GBP/USD drops below 1.31 amid USD strength, fails to sustain PMI gains

GBP/USD is trading below  1.31 after hitting a fresh high of 1.3172. The UK Manufacturing PMI beat with 49.8 and Services PMI with 52.9. The USD is gaining ground across the board.


Cryptos: Bears take over and draw a bloody moon

Despite appearances, Bitcoin is the asset with the best risk/benefit ratio. The current falls are adjusted to the ranges of the previous rise. Downward momentum expires in the first half of February.

Read more

Gold rebounds above $1560

The XAU/USD pair dropped to a daily low of $1556.70 during the European trading hours as the easing worries over coronavirus becoming a global epidemic and a broad-based USD strength put the pair under bearish pressure.

Gold News

USD/JPY stuck in range around 109.50 amid China coronavirus concerns

USD/JPY sticks to its range play around the midpoint of the 109 handle amid rising fears of the Chinese coronavirus outbreak globally, upbeat Japanese CPI data and a minor bounce seen in the US dollar across the board. Focus shifts to US PMIs.