EURJPY tumbled to a new 21-month trough today, hitting the 118.57 support level. The price is moving higher at the moment, jumping above the 23.6% Fibonacci retracement level of the downleg from 133.10 to 118.57, around 122.00. According to the RSI the short-term bias seems to be turning slightly higher as it approaches the 30 level, while the %K line of the stochastic oscillator posted a bullish crossover with the %D line in the negative territory.
If the market continues to push the pair even higher, prices could challenge the 123.70 resistance level, taken from the lows on June 2017. More advances could likely open the way for the 38.2% Fibonacci of 124.10, while traders’ attention could turn on the 124.60 hurdle, identified by the peak on May 29.
On the flipside, if the market manages to turn to the downside again and slips back below the 23.6% Fibonacci, this could send prices until the previous multi-month low of 118.57.
Having a look at the bigger picture, EURJPY seems to be strongly bearish after the sharp downward movement below the 124.60 barrier.
