- After bottoming out in sub-125.00 levels during last week, EUR/JPY has managed to stage a so far tepid rebound to the 126.00 milestone and above and is now hovering over the 126.20 region, coincident with the 78.6% Fibo retracement of the May-July up move.
- The breakdown of the 129.00 area earlier in the month has accelerated the selling bias and has so far negated another potential test of the key 200-day SMA round 131.50.
- Almost oversold levels in the cross (daily RSI at 33 at the time of writing) could allow for a continuation of the recovery, which should meet initial resistance at 126.96 (10-day SMA) ahead of the 21-day SMA at 128.41, If cleared, the 129.00 area should return to the traders’ radar.
EUR/JPY daily chart
Daily high: 126.38
Daily low: 126.29
Support Levels
S1: 125.77
S2: 125.14
S3: 124.71
Resistance Levels
R1: 126.83
R2: 127.26
R3: 127.89
Share
