EUR/JPY: technical analysis 05.12.2019
EUR/JPY quotes attempted to grow, but reaching 120.703 mark moved to a decline. If the sellers manage to decline the rate below the level of 120.600 (middle line of Bollinger bands) the correction can continue to the area of 120.508. There is a chance of an upward rebound, while its breakdown would allow the fall to continue to the area of 120.313 level.
One may speak about upward movement continuation after the price consolidates above the resistance level of 120.703. In this case, the next targets of buyers will be the level of 120.804-121.008.
The technical picture is mixed.
Bollinger Bands are pointed sideways.
The volumes of MACD histogram are slowly growing in the positive zone.
Stochastic is pointed downwards, reflecting the high possibility of the downward movement formation.
Support and resistance
Support levels: 120.508, 120.313, 120.117.
Resistance levels: 120.703, 120.898, 121.008.
Short positions can be opened below the level of 120.508 with the target at around 120.313 and stop-loss at 120.573.
Long positions can be opened above the level of 120.703 with the target at around 120.898 and stop-loss at 120.638.