EUR/JPY Price Analysis: There is a big Fib confluence area just under 1.22

• EUR/JPY is trading 0.29% higher on Tuesday as the Japanese Yen underperforms.
• The pair is looking to break higher past some important resistance zones.

EUR/JPY 4-hour chart

EUR/JPY is a very technical pair and usually responds well to Fibonacci analysis. The pair is trading 0.24% higher but there are some key levels above the current price. On the chart below the 50% Fibonacci retracement and the golden ratio of 161.8% on the Fib extension (in blue) meet just under 1.22. These strong Fibonacci confluence levels are often well respected and this one could act as a resistance.

The price is also testing the consolidation high at 121.32 at the moment. There does seem to be enough momentum for the price to break through but there has not been a close above the level just yet. In terms of the wave pattern, there has been a higher low higher high wave and there seems to be more upside momentum left for now. 

Looking at the indicators, the Relative Strength Index is very close to the oversold area but there is still room to the upside. The MACD histogram is green and the signal lines are trading above the mid-level, which is a bullish sign.

Additional levels