EUR/JPY technical analysis: 61.8% Fibo. offers nearby rest ahead of 118.92/85 support-zone

EUR/JPY sellers cheer the quote’s trading below 50% Fibonacci retracement.
61.8% Fibonacci retracement and the key horizontal region become crucial to watch.

Anil Panchal FXStreet

Sustained trading below 50% Fibonacci retracement signals the EUR/JPY pair’s further declines as it trades near 120.66 during Wednesday morning in Asia.

While 61.8% Fibonacci retracement of 2016 swing lows to 2018 swing highs, at 120.16, seems almost given, 120.00 round-figure and 118.92/85 support-area comprising current year low and late-April 2017 bottom could confine the pair’s further south-run.

Nearly oversold conditionals of 14-bar relative strength index (RSI) also question the pair’s heavy declines.

On the contrary, 121.00 and a three-week-old descending trend-line at 121.26 can keep limiting the pair’s upside attempts, a break of which can trigger fresh advances to 122.00, 122.34 and the monthly high surrounding 123.36.

EUR/JPY weekly chart

Trend: Bearish

1. R3 121.51
2. R2 121.34
3. R1 121.13
PP 120.96
1. S1 120.75
2. S2 120.58
3. S3 120.37

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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