EUR/JPY technical analysis: Pullback likely amid oversold RSI condition

EUR/JPY seesaws around multi-month low with 119.00/05 confluence being the key resistance.
Oversold RSI conditions favor short-covering moves from near-term support-line.

Anil Panchal FXStreet

EUR/JPY trades near April 2017 low while flashing 116.65 on the chart amid initial Asian morning on Monday.

Given the oversold conditions of 14-bar relative strength index (RSI), prices are likely to bounce off a four-week-old falling trend-line, at 116.17, failing to do so can drag it further down towards April 2017 low of 114.85.

On the contrary, 200-bar moving average on the four-hour chart (4H 200MA) and a downward sloping trend-line since August 06 limit the pair’s near-term upside around 119.00/05. Ahead of that, a two-week-old descending resistance-line at 118.00 could question pair’s quick rise.

In a case prices rally beyond 119.05, July 25 low surrounding 120.00 round-figure will flash on the buyers’ radar.

EUR/JPY 4-hour chart

Trend: pullback expected

Additional important levels

Overview
Today last price	116.62
Today Daily Change	-21 pips
Today Daily Change %	-0.18%
Today daily open	116.83

Trends
Daily SMA20	118.08
Daily SMA50	120.05
Daily SMA100	121.67
Daily SMA200	123.76

Levels
Previous Daily High	117.83
Previous Daily Low	116.62
Previous Weekly High	118.2
Previous Weekly Low	116.57
Previous Monthly High	120.72
Previous Monthly Low	116.57
Daily Fibonacci 38.2%	117.08
Daily Fibonacci 61.8%	117.37
Daily Pivot Point S1	116.35
Daily Pivot Point S2	115.88
Daily Pivot Point S3	115.14
Daily Pivot Point R1	117.57
Daily Pivot Point R2	118.31
Daily Pivot Point R3	118.78

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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