EUR/JPY: technical analysis 15.01.20
The price has tested the support level of 122.188 and was slightly corrected upwards, but the general downward trend maintains. The breakdown of the 122.266 support will let the price retest 122.188 level. One may speak about downward movement continuation after the price consolidates below this level. In this case, the next targets of sellers will be the level of 121.875.
The upward rebound from 122.266 support and consolidation of the price above 122.396 will be a signal for upward correction resumption and give the prospect of growth to the 122.562-122.656 resistance. Should prices continue growing above 122.656, the level of 122.755 might try activating a downward rebound.
Technical indicators mostly keep a sell signal but the upward correction is possible in the short term.
Bollinger Bands are pointed upwards.
MACD volumes are decreasing in the positive zone.
Stochastic’s lines are pointed downwards keeping a sell signal.
Support and resistance
Support levels: 122.266, 122.188, 121.875.
Resistance levels: 122.396, 122.656, 122.755.
Short positions can be opened below the level of 122.266 with the target at around 122.188-121.875 and stop-loss at 122.370.
Long positions can be opened above the level of 122.396 with the target at around 122.656 and stop-loss at 122.309.