EUR/JPY: technical analysis 23.12.19

Current trend

EUR/JPY continues to consolidate in the side channel after a significant decline over the past four days. Meanwhile, the pair has a potential for further decline. The decisive breakdown of 121.094 is needed to indicate the downward trend resumption. In this case, the sellers will aim for the level of 120.703.

Alternative scenario

The rebound from 121.094 and pullback above 121.343 will be a sign for upward correction formation and give a prospect of growth to 121.484-121.595 resistance. The area of 121.595 is coincided with the middle line of Bollinger Bands and can activate a downward rebound. However, the breakout of 121.600 could trigger a pair’s active growth to the 121.875 resistance.

Technical indicators

Technical indicators mostly maintain a sell signal.

Bollinger Bands are pointed downwards.

MACD is growing in the negative zone.

Stochastic’s lines are in the negative zone and pointed sideways.

Support and resistance

Support levels: 121.094, 120.703, 120.313.
Resistance levels: 121.343, 121.595, 121.875.

Trading recommendations

Short positions can be opened below the level of 121.094 with the target at around 120.703 and stop-loss at 121.224.
Long positions can be opened above the level of 121.343 with the target at around 121.595 and stop-loss at 121.259.

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