EUR/JPY Technical Analysis: rejected near 50-day SMA post-ECB

Haresh Menghani FXStreet

• Retreats sharply from 50-day SMA after ECB said that the key interest rates are expected to remain at their present levels at least through the summer of 2019.

• Repeated failures ahead of a short-term moving average, for the third time in the past one-month, clearly suggests that the near-term downslide might still be far from over.

• A follow-through selling would reaffirm the negative outlook and pave the way for an extension of the downslide back towards the 127.00 round figure mark.

• Only a decisive breakthrough mid-130.00s (50-DMA) would negate the bearish bias and pave the way for a fresh leg of up-move.

EUR/JPY daily chart

Spot Rate: 129.40
Daily High: 130.36
Trend: Bearish

Resistance
R1: 129.62 (horizontal level)
R2: 130.00 (psychological round figure mark)
R3: 130.44 (50-day SMA)

Support
S1: 129.00 (round figure mark)
S2: 128.66 (weekly low)
S3: 128.11 (last Friday's swing low)

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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