EUR/JPY: technical analysis 02.12.2019

Current trend

EUR/JPY quotes attempted to grow, but reaching 120.916 mark moved to a downward correction. The instrument has the potential to further decline to 120.703. This level can activate an upward rebound. Meanwhile, a decisive breakdown of 120.703 will indicate the downward trend resumption and give a prospect of decline to 120.508 support level. The area of 120.508-120.470 seems a key zone for the sellers in a short term period. There is a high chance of an upward rebound, while its breakdown would allow the fall to continue to 120.313 support.

Alternative scenario

The rebound from 120.703 will let the price to retest the 120.916 resistance again. The upward trend will be restored after the price is set above the level of 121.000. In this case, the next targets of buyers will aim for the be the area of 121.094-121.289 resistance zone.

Technical indicators mostly keep a buy signal, but the downward correction is possible in the short term.

Bollinger Bands are pointed upwards. However, as the price has broken the upper border of Bollinger Bands, the downward correction is not excluded.
The volumes of MACD histogram are growing in a positive zone.
Stochastic is pointed upwards, reflecting the high possibility of upward movement formation.

Support and resistance

Support levels: 120.703, 120.508, 120.313.
Resistance levels: 120.898, 121.094, 121.289.

Trading recommendations

Short positions can be opened below the level of 120.703 with the target at around 120.508 and stop-loss at 120.770.
Long positions can be opened above the level of 121.000 with the target at around 121.289 and stop-loss at 120.903.

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