EUR/JPY technical analysis: Bears await break of 120.80/78 to aim for January low

EUR/JPY buyers lurk around June month low amid nearly oversold RSI.
Break of key support can drag prices to sub-120.00 region.

Anil Panchal FXStreet

With the failure to slip beneath 120.80/78 support-zone, the EUR/JPY pair trades near 121.00 during early Friday.

Given the nearly oversold conditions of 14-day relative strength index (RSI) and the quote’s U-turn from June month low, prices are likely to witness a pullback towards early-month low close to 131.30 while 23.6% Fibonacci retracement of November 2018 to January 2019 drop, at 121.51, could be on buyers’ radar then after.

Should prices manage to clear 23.6% Fibonacci retracement, 21-day and 50-day simple moving averages (SMAs) around 121.83 and 122.07 respectively could return to the chart.

Alternatively, bears await a sustained break of 120.80/78 support-zone, comprising June month low, to aim for January’s flash crash bottom surrounding 118.85. However, 120.00 round-figure might offer an intermediate halt during the slump.

EUR/JPY daily chart

Trend: Pullback expected

1. R3 121.78
2. R2 121.65
3. R1 121.4
PP 121.28
1. S1 121.03
2. S2 120.9
3. S3 120.66

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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