EUR/JPY Technical Analysis: breaks below 50-hour SMA, now seems vulnerable

Haresh Menghani FXStreet

• The cross snapped three consecutive days of winning streak and stalls the ongoing recovery move from 11-month lows set last week.
• Forms a triple top bearish chart pattern on the 1-hourly chart and retracement back below 50-hour SMA prompted some fresh technical selling in the past hour, which could get extended towards 200-hour SMA support.
• Now a sustained move beyond the 128.70 region, nearing 61.8% Fibonacci retracement level of the 131.04-124.62 recent fall, is needed to negate the bearish pattern formation.

EUR/JPY 1-hourly chart

Spot Rate: 128.10
Daily High: 128.70
Daily Low: 127.79
Trend: Bearish

Resistance
R1: 128.27 (daily pivot)
R2: 128.70 (daily swing high)
R3: 128.86 (100-period SMA H4)

Support
S1: 127.64 (100-period SMA H1)
S2: 127.17 (S2 daily pivot-point)
S3: 126.94 (161.8% Fibonacci retracement level)

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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