EUR/JPY: technical analysis 13.12.19

Current trend

On the 4-hour chart, the pair keeps an active positive dynamic. The price has tested the resistance level of 122.572 and was slightly corrected downwards, but the general upward trend maintains. The decisive break of 122.656 is needed to indicate uptrend resumption. In this case, the next targets of buyers will be the level of 122.924-123.250.

Alternative scenario

The pullback below the 122.266 support will be a signal for downward correction formation and give a prospect of decline to 122.117-121.875 support zone. The level of 121.875 seems strong support which can activate an upward rebound. However, the breakdown of this level can accelerate the decline towards 121.484 support.

Technical indicators

Technical indicators maintain a buy signal.

Bollinger Bands are diverging on the background of bullish momentum.

MACD is growing in a positive zone.

Stochastic is in the overbought zone and is pointed upwards, reflecting the high possibility of upward movement formation.

Support and resistance

Support levels: 122.266, 121.875, 121.484.
Resistance levels: 122.656, 122.924, 123.250.

Trading recommendations

Short positions can be opened below the level of 122.266 with the target at around 121.875 and stop-loss at 122.396.
Long positions can be opened above the level of 122.656 with the target at around 122.924 and stop-loss at 122.526.

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