EUR/JPY: technical analysis 18.12.19
On the 4-hour chart, the pair keeps a negative dynamic. The price went down below the strong support level of 121.875 and can fall further to the level of 121.484. This mark can prevent the instrument from falling, as the possibility of the reverse of the price is high there. Meanwhile, the decisive break of 121.484 is needed to accelerate the downward trend resumption. In this case, the next targets of sellers will be the support level of 121.094.
The upward rebound from 121.875 and pullback above 122.020 (which corresponds to the middle line of Bollinger Bands) will give a prospect of growth to the resistance area 122.266-122.451. Should prices continue growing above 122.451, the mark of 122.656 might try activating a price reverse.
Technical indicators maintain a sell signal.
Bollinger Bands are diverging on the background of bearish momentum.
MACD volumes are decreasing in the positive zone.
Stochastic’s lines are pointed downwards and are reaching the oversold area.
Support and resistance
Support levels: 121.795, 121.484, 121.094.
Resistance levels: 122.020, 122.266, 122.451, 122.656.
Short positions can be opened below the level of 121.795 with the target at around 121.484 and stop-loss at 121.898.
Long positions can be opened above the level of 122.020 with the target at around 122.266-122.451 and stop-loss at 121.880.