EUR/JPY technical analysis: Buyers lurk around multi-day old support-line, RSI close to oversold

EUR/JPY buyers fall short of clearing 4H 200EMA while sellers exit around 20-day old ascending trend-line.
122.23/25 becomes the key resistance-confluence amid close to oversold RSI.

Anil Panchal FXStreet

Even after the sustained trading beneath 200-bar exponential moving average on the 4-hour chart (4H 200EMA), EUR/JPY sellers fail to conquer short-term ascending trend-line as the quote takes the bids near 121.76 ahead of the European open on Thursday.

Adding to the chances of the pullback is near to oversold conditions of 14-bar relative strength index (RSI) that highlights the importance of 61.8% Fibonacci retracement of a range between June swing lows to July top, around 121.87.

Should prices rally past-121.87, 50% Fibonacci retracement near 122.15 can offer an intermediate halt ahead of pushing bulls to confront the 122.23/25 confluence including 4H 200EMA and near-term descending trend-line resistance.

On the downside, pair’s break of 121.57 support can trigger fresh declines to current month low near 121.31 whereas late-June bottom around 120.95 and the 120.00 round-figure can please bears then after.

EUR/JPY 4-hour chart

Trend: Pullback expected

1. R3 122.68
2. R2 122.51
3. R1 122.27
PP 122.1
1. S1 121.87
2. S2 121.7
3. S3 121.46

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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