- 38.2% Fibonacci retracement limits EUR/JPY upside towards 100-D EMA.
- A downside break of 50-D EMA highlights 23.6% Fibonacci retracement and 21-D EMA as supports.
Despite successfully trading beyond 50-day exponential moving average (50-D EMA), the EUR/JPY pair can’t rise farther as 38.2% Fibonacci retracement of March – June downpour limits the quote’s advances as it trades near 122.90 during early Monday.
While 122.88 comprising 50-D EMA acts as immediate support, a break of which can drag the pair to 23.6% Fibonacci retracement level of 122.35, close to 21-D EMA level of 122.29.
In a case where prices keep declining past-122.29, June 25 low of 121.65 and the June month bottom surrounding 120.78 can reappear as quotes.
Alternatively, a 38.2% Fibonacci retracement level of 123.34 holds the key for the pair’s run up to 100-D EMA level of 123.89.
Also, the pair’s sustained rise above 123.89 enables it to challenge 50% Fibonacci retracement level of 124.14.
EUR/JPY daily chart
Trend: Pullback expected
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