EUR/JPY: TECHNICAL ANALYSIS 01.11.2019
On the 4-hour chart, the instrument is correcting up from the lower line of the Bollinger Bands.
If the "bulls" manage to raise the rate above the level of 120.703, the correction can continue to the area of 120.898 (middle line of Bollinger bands). This level seems a key target of correction and can restrict further upside movement.
Meanwhile, the decisive breakout of 120.898 and the pair’s sustained trading beyond 121.094 will be a signal for upward trend restoring and give the prospect of growth to the levels of 121.289.
The rebound from the level 120.703 and pair’s sustained trading below 120.500 could let the price back to 120.313 support.
The downward trend will be restored after the price is set below the level of 120.270.
In this case, the next targets of sellers will be the level of 120.117-119.922.
The technical picture is mixed.
Bollinger Bands are pointed downwards. MACD histogram is in the negative zone keeping a signal for the opening of sell positions. Stochastic has left the oversold area and is pointed upwards, reflecting the high possibility of upward movement formation.
Support and resistance
Support levels: 120.508, 120.313, 120.117, 119.922.
Resistance levels: 120.703, 120.898, 121.094.
Short positions can be opened below the level of 120.508 with the target at around 120.313-120.270 and stop-loss at 120.587.
Long positions can be opened above the level of 120.703 with the target at around 120.898 and stop-loss at 120.617.