EUR/JPY: technical analysis 02.01.2020

Current trend

The EUR/JPY pair starred today’s trading with a slight downward gap. The instrument is now testing the support level of 121.782. The breakdown of this level can accelerate the pair's decline towards 121.680 support. This level can activate an upward rebound, while its breakdown would give the prospect of decline to 121.484 support.

Alternative scenario

The upward rebound from 121.680 and the pair’s sustained trading above 121.875 will be a sign of upward correction formation and give a prospect of growth to the 122.070 resistance. The decisive break of this level is needed to indicate the upward trend resumption. In this case, the next targets of buyers will be the level of 122.266-122.348.

Technical indicators

Technical indicators mostly maintain a sell signal.

Bollinger Bands are diverging on the background of bearish momentum.

MACD volumes are decreasing in the positive zone.

Stochastic is pointed downwards.

Support and resistance

Support levels: 121.782, 121.680, 121.484, 121.289.
Resistance levels: 121.875, 122.070, 122.266, 122.348.

Trading recommendations

Short positions can be opened below the level of 121.782 with the target at around 121.680-121.484 and stop-loss at 121.881.
Long positions can be opened above the level of 121.875 with the target at around 122.070-122.266 and stop-loss at 121.744.

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