EUR/JPY: technical analysis 03.04.20

Current trend

EUR/JPY quotes attempted to grow, but reaching 117.472 mark moved to a downward correction. Now we can see the pair is trying to consolidate below the 117.000 support. If the pair manages to break this level, the decline will continue to the area 116.700-116.406. The lower border of this range can activate an upward reverse of the price. Meanwhile, the breakdown of 116.400 can diver market to 116.000 support.

Alternative scenario

The pullback above 117.387 resistance will be a sign of the upward trajectory development and let the price grow to the area of 117.750 resistance (the middle line of Bollinger bands). One may speak about upward movement continuation after the price consolidates above the resistance level of 117.969. In this case, the next targets of buyers will be the level of 118.200-118.500.

Technical indicators

Technical indicators mostly keep a sell signal, but the upward correction is possible in the short term.

Bollinger Bands are pointed downwards.

MACD histogram is in the negative zone keeping a signal for the opening of sell positions.

Stochastic is pointed upwards, reflecting the high possibility of upward movement formation.

Support and resistance

Support levels: 117.000, 116.700, 116.406, 116.000.
Resistance levels: 117.188, 117.387, 117.750, 117.969, 118.200.

Trading recommendations

Short positions can be opened below the level of 117.000 with the target at around 116.700 and stop-loss at 117.100.
Long positions can be opened above the level of 117.387 with the target at around 117.750 and stop-loss at 117.266.

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