EUR/JPY technical analysis: Approaching the lower end of the bear flag

  • EUR/JPY seems to have carved out a bear flag on the 8-hour chart.
  • A break below 122.65 would confirm a bear flag breakdown.

EUR/JPY is on the defensive and could soon drop to the bear flag support of 122.65, courtesy of risk aversion and increased demand for the anti-risk Japanese Yen.

Acceptance below 122.65 would confirm a bear flag breakdown - a continuation pattern which often accelerates the preceding bearish move. So, a flag breakdown, if confirmed, could yield a sell-off to levels below 112.00.

Supporting the bearish case is the below-50 print on the 14-day relative strength index (RSI).

The outlook, however, would turn bullish if the cross rises above 123.08, validating the positive crossover the 5- and 10-day moving averages (MAs) confirmed earlier this week.

8-hour chart

Trend: Bearish below 122.65

Pivot points

    1. R3 123.93
    2. R2 123.73
    3. R1 123.39
  1. PP 123.18
    1. S1 122.84
    2. S2 122.64
    3. S3 122.3


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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD consolidates losses as Fed moderates message

EUR/USD is trading above 1.1350, consolidating losses. The Fed's Bullard and Chair Powell have conveyed a balanced message, boosting the greenback. Treasury Secretary Mnuchin said 90% of the deal with China is done.


GBP/USD trades below 1.2700

GBP/USD is trading below 1.2700. BOE Gov. Carney said the BOE may cut rates in case of a no-deal Brexit. Boris Johnson has rattled markets by saying leaving the EU by October 31st is "do or die."


USD/JPY sticks to gains near 107.70, looks to snap 7-day losing streak

Following the sharp upsurge witnessed during the European trading hours, the USD/JPY pair has gone into a consolidation phase and is now moving in a relatively tight range in the upper half of its daily trading range.


Gold finds some support near $1400 mark, lacks follow-through

Gold held on to its weaker tone through the early North-American session, albeit pared a part of its intraday slide to the $1400 neighbourhood post-US economic data.

Gold News

EIA: Crude inventories decreased by 12.8 million barrels, WTI inches closer to $60

In its weekly petroleum report for the week ending June 21, the Energy Information Administration (EIA) announced that the commercial crude oil inventories in the United States decreased by 12.8 million barrels from the previous week. 

Read more