- Near-term HMA, trend-lines keep challenging buyers.
- 121.00 – 120.95 becomes the key support-zone.
Having reversed from 21-HMA, the EUR/JPY pair now head towards short-term important resistances as it takes the rounds near 121.55 during early Tuesday.
Among immediate resistance, 100-hour moving average (HMA) near 121.62 becomes the closest upside barrier while a descending trend-line since May 22 at 121.77 can limit the pair’s rise then after.
Though, it should also be noted that the price rally beyond 121.77 may escalate the recovery towards 50% Fibonacci retracement level near 122.26 and then to 122.70 during further advances.
Meanwhile, a downside break of 21-HMA level of 121.35 can trigger fresh declines to 121.00 – 120.95 area comprising recent lows.
Given the pair’s extended weakness below 120.95, 120.00 round-figure could lure bears ahead of diverting them to late-April 2017 low near 119.00.
EUR/JPY hourly chart
Trend: Pullback expected
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