EUR/JPY technical analysis: Drops to 50-day MA support

EUR/JPY is flirting with 50-day MA support amid the drop in the S&P 500 futures.
Bulls need a break above the trendline sloping downwards from April highs.

Omkar Godbole FXStreet Contributor

EUR/JPY fell to the 50-day moving average (MA) support of 119.04 soon before press time, having faced rejection at the resistance of the trendline connecting April 17 and July 1 highs in the early Asian trading hours.

As of writing, the pair is trading at 119.14, representing 0.40% losses on the day.

The pair has failed at least three times in the last four days to take out the descending trendline

That has strengthened the case for a convincing break below 119.04 and a deeper drop to 118.69 (Sept. 16 low).

On the higher side, a convincing daily close above the descending trendline is needed to confirm a bullish reversal.

The bullish breakout, however, may remain elusive, as the US equity futures are flashing signs of risk aversion. As of writing, the futures on the S&P 500 are down 030%. So, the anti-risk Japanese Yen will likely remain better bid during the day ahead.

Moreover, the Bank of Japan (BOJ) kept key policy tools unchanged a few minutes before press time, leaving the JPY pairs at the mercy of the broader market sentiment.

Daily chart

Trend: Bearish

Technical levels

EUR/JPY

Overview
Today last price	119.01
Today Daily Change	-0.61
Today Daily Change %	-0.51
Today daily open	119.62

Trends
Daily SMA20	118.12
Daily SMA50	119.11
Daily SMA100	120.75
Daily SMA200	123.09

Levels
Previous Daily High	119.83
Previous Daily Low	119.27
Previous Weekly High	120.01
Previous Weekly Low	117.54
Previous Monthly High	120.72
Previous Monthly Low	116.57
Daily Fibonacci 38.2%	119.48
Daily Fibonacci 61.8%	119.62
Daily Pivot Point S1	119.32
Daily Pivot Point S2	119.01
Daily Pivot Point S3	118.76
Daily Pivot Point R1	119.88
Daily Pivot Point R2	120.14
Daily Pivot Point R3	120.44

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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