EUR/JPY: technical analysis 10.12.19

Current trend

On the 4-hour chart, the instrument keeps a positive dynamic The price is approaching a strong resistance in the region of 120.313. The area of 120.313-120.380 can prevent the instrument from growing, as the possibility of the reverse of the price is high there. Meanwhile, a decisive breakout of 120.380 will indicate the uptrend resumption and give a prospect of growth to the 120.508-120.670 resistance area.

Alternative scenario

If the EUR/JPY cannot consolidate above the level of 120.313 during the short term period, the price can reverse and retest the support level of 120.117. Should prices continue slipping under this level, the mark of 119.922 might try activating an upward rebound. However, the breakdown of 119.922 could trigger a pair’s active sales. In this case, the next targets of sellers will be the level of 119.727.

Technical indicators

The technical picture is mixed.

Bollinger Bands are pointed downwards.

MACD is decreasing in the negative zone.

Stochastic is pointed upwards, reflecting the high possibility of upward movement formation.

Support and resistance

Support levels:120.117, 119.922, 119.727.
Resistance levels: 120.313, 120.508, 120.703.

Trading recommendations

Short positions can be opened below the level of 120.117 with the target at around 119.922 and stop-loss at 120.181.

Long positions can be opened above the level of 120.380 with the target at around 120.670 and stop-loss at 120.283.

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