EURJPY flirted with a fresh three-year low of 115.53 on Friday, before returning slightly higher above 116.00 in the very short-term. In the longer timeframe, the price is moving lower over the last three months, remaining well below the short-term simple moving averages (SMAs). Also, the MACD oscillator is extending its downside movement below the zero and trigger lines, while the RSI is flattening in negative territory.
If prices continue to head lower, immediate support is coming from the 115.53 key level, before meeting the 114.90 barrier, taken from the lows on April 2017. More losses could send the market towards the 113.70 region, achieved from November 2016.
Alternatively, a jump above the 116.30 resistance would take the pair towards the 20-day SMA, which overlaps with the 23.6% Fibonacci retracement level of the down leg from 122.90 to 115.53 at 117.25. Above that, the 40-day SMA at 118.00 is acting as resistance ahead of the 38.2% Fibonacci of 118.40, penetrating the tentative falling trend line to the upside.
Concluding, EURJPY has been attracting the selling interest after it touched the 122.90 resistance and any declines beneath Friday’s lows could endorse this outlook again.
