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EUR/JPY: technical analysis 27.11.2019

Current trend

Today EUR/JPY quotes attempted to continue the upward dynamic but reaching 120.258 hurdles moved to a downward correction. If the sellers manage to decline the rate below the level of 120.104, the correction can continue to the area of 120.000, which coincided with the middle line of Bollinger Bands. There is a chance of an upward rebound, while its breakdown would be a signal for downward trend resumption. In this case, the next targets of sellers will be the area of 119.922-119.727 levels.

Alternative scenario

The rebound from 120.117 could lead the price back to 120.258 resistance, which holds the gate for its rise to key bullish level 120.313. The decisive break of 120.313 could trigger a pair’s active run-up to 120.508-120.565 resistance.

The technical picture is mixed.
Bollinger Bands are pointed sideways.
MACD histogram is in the positive zone keeping a week signal for the opening of buy positions.
Stochastic has left the overbought area and is pointed downwards, reflecting the high possibility of the downward movement formation.

Support and resistance

Support levels: 120.117, 119.922, 119.727.
Resistance levels: 120.313, 120.508, 120.703.

Trading recommendations

Short positions can be opened below the level of 120.104 with the target at around 119.922-119.727 and stop-loss at 120.229.
Long positions can be opened above the level of 120.313 with the target at around 120.565 and stop-loss at 120.229.

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