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  • EUR/JPY is correcting up above the 120.60 level.
  • Resistances are seen near the 120.87 and 121.13 levels.  

EUR/JPY daily chart

EUR/JPY created a head-and-shoulders top while trading below the 121.00 handle and the 50 and 200-day simple moving averages (DMAs).

EUR/JPY four-hour chart

The market had a climactic selloff below the 200 SMA. The spot is now attempting a reversal up with bulls working for a return to the mean. A daily close above the 120.60 level could lead to the 120.87 and 121.13 levels near the 200 SMA. Further up lies the 121.38/63 price zone. On the flip side, if the bears break below the 120.26 support the market could decline towards 120.00 and 119.38 level, according to the Technical Confluences Indicator.   

Additional key levels