EUR/JPY Technical Analysis: H&S breakdown favors drop below 124.00

Omkar Godbole FXStreet Contributor

The EUR/JPY pair is currently trading a 124.20 and could soon drop below the psychological level of 124.00, having suffered a head-and-shoulders (H&S) breakdown on Friday.

Hourly chart

The H&S breakdown indicates that the corrective bounce from the Jan. 3 low of 118.82 has ended and the bears have likely regained some control.
Notably, that pattern has opened the doors to 123.90 (target as per the measured move method).
Validating that bearish argument is the 14-hour RSI of 32.00 and the downward sloping 5- and 10-day moving averages (MAs).
A break above 124.50 (H&S neckline) would invalidate the bearish setup.

Trend: Bearish

EUR/JPY

Overview:
    Today Last Price: 124.08
    Today Daily change: -35 pips
    Today Daily change %: -0.281%
    Today Daily Open: 124.43
Trends:
    Previous Daily SMA20: 125.68
    Previous Daily SMA50: 127.49
    Previous Daily SMA100: 128.72
    Previous Daily SMA200: 129.19
Levels:
    Previous Daily High: 125
    Previous Daily Low: 124.22
    Previous Weekly High: 125.1
    Previous Weekly Low: 123.4
    Previous Monthly High: 129.3
    Previous Monthly Low: 125.36
    Previous Daily Fibonacci 38.2%: 124.52
    Previous Daily Fibonacci 61.8%: 124.7
    Previous Daily Pivot Point S1: 124.1
    Previous Daily Pivot Point S2: 123.78
    Previous Daily Pivot Point S3: 123.33
    Previous Daily Pivot Point R1: 124.88
    Previous Daily Pivot Point R2: 125.33
    Previous Daily Pivot Point R3: 125.65

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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