EUR/JPY Technical Analysis: Teasing bearish reversal

Omkar Godbole FXStreet Contributor

EUR/JPY created an inverted bearish hammer yesterday, confirming an end of the rally from the March 8 low of 124.27. A bullish-to-bearish reversal, however, would be confirmed if the JPY cross closes below 126.35 today, validating the bearish hammer candle.

The probability of the pair closing below 126.35 today would rise if the sideways channel seen in the 4-hour chart is breached to the downside.

Acceptance below 126.35 would confirm a channel breakdown and open the doors for a deeper sell-off to 125.53 (50% Fib R of the recent rally). As of writing, the pair is trading at 126.20.

Daily chart

4-hour chart

Trend: Bearish

EUR/JPY

Overview
Today last price	126.21
Today Daily Change	-0.16
Today Daily Change %	-0.13
Today daily open	126.37

Trends
Daily SMA20	126.04
Daily SMA50	125.3
Daily SMA100	126.48
Daily SMA200	127.96

Levels
Previous Daily High	126.79
Previous Daily Low	126.32
Previous Weekly High	126.58
Previous Weekly Low	124.48
Previous Monthly High	126.92
Previous Monthly Low	124.16
Daily Fibonacci 38.2%	126.5
Daily Fibonacci 61.8%	126.61
Daily Pivot Point S1	126.2
Daily Pivot Point S2	126.03
Daily Pivot Point S3	125.73
Daily Pivot Point R1	126.67
Daily Pivot Point R2	126.96
Daily Pivot Point R3	127.14

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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