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EUR/JPY: technical analysis 21.02.20

Current trend

EUR/JPY is in the stage of a downward correction after growing to the level of 121.391. At the moment the price has met the support at the level of 120.760. The downward trend will be restored after the price is set below the level of 120.700. In this case, the next targets of sellers will be the area of 120.508-120.313 levels. Judging by the downward reversal of Stochastic, this case scenario is possible soon.

Alternative scenario

The upward rebound from 120.703 will let the price re-test the 120.900 resistance. The breakout of 120.900 level will give a prospect of growing to the 121.094 area. Additionally, pair’s sustained trading beyond the 121.094 could set the level of 121.391on buyers’ radar.

Technical indicators

The technical picture is mixed.

Bollinger Bands are diverging on the background of bullish momentum.

MACD is growing in a 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, 120.508, 120.313.
Resistance levels: 121.094, 121.391, 121.600.

Trading recommendations

Short positions can be opened below the level of 120.703 with the target at around 120.508-120.400 and stop-loss at 120.800.
Long positions can be opened above the level of 121.094 with the target at around 121.391 and stop-loss at 120.995.

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