- Failure to cross mid-month high, overbought RSI triggered EUR/JPY declines.
- 200-HMA, 38.2% Fibonacci retracement confluence can question the latest downpour amid RSI drop.
Having failed to clear the late-June 13 top drags the EUR/JPY pair to short-term key support confluence as it takes the rounds to 121.95 ahead of the European open on Tuesday.
While 200-hour moving average (200-HMA) and 38.2% Fibonacci retracement of recent declines strengthens the 121.80 mark as a support confluence, pair’s further downside is less likely considering expected stabilization past steep drop in the 14-bar relative strength index.
Should bears refrain from respecting 121.80 rest-point, 121.30 and 121.00 could be next on their radar.
Alternatively, 122.21 and aforementioned horizontal-line near 122.48 could keep restricting the pair near-term upside.
Also, a successful break of 122.48 enables buyers to aim for 122.73 and month’s top close to 123.18.
EUR/JPY hourly chart
- R3 122.89
- R2 122.65
- R1 122.48
- PP 122.23
- S1 122.06
- S2 121.82
- S3 121.65
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