Current trend

EUR/JPY quotes attempted to grow, but reaching 121.048 marks moved to a downward correction again. The first target of the correction is the level of 120.703, which corresponds to the middle line of Bollinger Bands. The breakdown and pair’s sustained trading below this level will be a signal for downward movement formation and give the prospect of decline to the levels of 120.313. The level of 120.313 will be a ket level for the sellers in a short term period.
Alternative scenario.
Pullback above 121.094 will be a signal for upward trend resumption. In this case, the next targets of buyers will be the area of levels of 121.377-121.484.
The technical picture is mixed.
Bollinger Bands are pointed sideways.
The volumes of MACD histograms are slightly growing in the positive zone.
Stochastic has left the overbought area and is pointed downwards, reflecting the high possibility of the downward movement formation.

Support and resistance

Support levels: 120.703, 120.540, 120.313.
Resistance levels: 121.094, 121.377, 121.484.

Trading recommendations

Short positions can be opened below the level of 120.703 with the target at around 120.540-120.313 and stop-loss at 121.830.
Long positions can be opened above the level of 121.094 with the target at around 121.377-121.484 and stop-loss at 120.964.

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