Current trend

On the 4-hour chart, EUR/JPY shows a negative dynamic. At the moment the price has met the support at the level of 120.677. A decisive breakdown of 120.677 is needed to indicate the downward trend resumption. In this case, the sellers will aim for the level of 120.508-120.378.

Alternative scenario.
The rebound from level 120.703 and pair’s sustained trading above 120.900 will be a signal for upward trend formation. In this case, the next targets of buyers will be the level of 121.094 which is the key level for the short term period. There is a chance of a downward rebound, while its breakout can trigger a pair’s fresh run-up to 121.289 resistance.
The technical picture is mixed. Bollinger Bands and Stochastic are pointed sideways. MACD histogram is ready to enter the negative zone and form a sell signal.

Support and resistance

Support levels: 120.703, 120.508, 120.378.
Resistance levels: 120.900, 121.094, 121.289.

Trading recommendations

Short positions can be opened below the level of 120.703 with the target at around 120.508-120.373 and stop-loss at 120.807.
Long positions can be opened above the level of 120.900 with the target at around 121.094-121.289 and stop-loss at 120.770.

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