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Forex Technical analysis by Atirox for EUR/JPY

Current trend

EUR/JPY quotes attempted to grow, but reaching 121.133 mark moved to a downard correction. If the sellers manage to decline the rate below the level of 120.984, the correction can continue to the area of 120.687, which coincided with the middle line of Bollinger Bands. The level of 120.687 seem a key target of correction. There is a high chance of an upward rebound, while its breakdown would allow the fall to continue to thr area of 120.313 level.
Alternative scenario.
The upward trend will be restored after the price is set above the level of 121.094. In this case, the buyers will aim for the level of 121.347 level. The area of 121.347 level is a strong resistance area, which can prevent the instrument from growing. Meanwhile, the decisive break of 121.347 level will indicate the up trend resumption and let the price to grow to the area of 121.518 level.
Technical indicators mostly reflect the moderate maintenance of the downward correction. MACD volumes are decreasing in the positive zone. Stochastic is in the overbought area and is pointed downwards, reflecting the high possibility of the downward movement formation. Bollinger Bands are pointed upwards.

Support and resistance

Support levels: 120.984, 120.687, 120.313.
Resistance levels: 121.094, 121.347, 121.518.

Trading recommendations

Short positions can be opened below the level of 120.984 with the target at around 120.687 and stop loss at 121.083.
Long positions can be opened above the level of 121.094 with the target at around 121.347 and stop loss at 121.000.

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