- Break of immediate support-line drags EUR/JPY to a week’s low.
- Oversold RSI can limit further declines around 122.15/14 key support area.
While a break of an immediate ascending trend-line drags the EUR/JPY pair to a week’s low, 50% Fibonacci retracement of late-June upside and 200-hour moving average (200-HMA) limits further declines as the quote seesaws near 122.23 during early Tuesday.
Supporting the strength of 122.15/14 confluence region is oversold levels of 14-bar relative strength index.
If the bears refrain from respecting 122.14 rest-point, 61.8% Fibonacci retracement near 121.87 and June 25 low near 121.65 could come back on the chart.
Meanwhile, 38.2% Fibonacci retracement near 122.44 acts as a close resistance ahead of highlighting recent tops surrounding 123.00 and 123.36.
EUR/JPY hourly chart
Trend: Pullback expected
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