EUR/JPY: TECHNICAL ANALYSIS 24.10.2019
EUR/JPY quotes attempted to grow, but reaching 121.046 mark moved to a downard correction The instrument is now consolidating around the middle line of Bollinger Bands (120.893). In order to continue the downward dynamic EUR/JPY is need to consolidate below this level. In this case, the next targets of sellers will be the area of levels of 120.635-120.313.
If the instrument cannot consolidate below the level of 120.893 during short term period, it will begin to grow to the area of 121.094. In case the pair manage to cross the 121.094 hurdle, the upward trend can restore, and the instrument can retest the resistance level of 121.464. The area of 121.464 level is a strong resistance area, which can prevent the instrument from growing.
The technical picture is mixed. Bollinger Bands are pointed sideways. The volumes of MACD histogram are slightly growing in the positive zone. Stochastic is in the overbought area and is pointed downwards, reflecting the high possibility of the downward movement formation.
Support and resistance
Support levels: 120.893, 120.635, 120.313.
Resistance levels: 121.094, 121.464, 121.875.
Short positions can be opened below the level of 120.893 with the target at around 120.635-120.500 and stop loss at 121.024.
Long positions can be opened above the level of 121.094 with the target at around 121.464 and stop loss at 120.970.