EUR/JPY technical analysis: Pullback likely amid oversold RSI condition
|- EUR/JPY seesaws around multi-month low with 119.00/05 confluence being the key resistance.
- Oversold RSI conditions favor short-covering moves from near-term support-line.
EUR/JPY trades near April 2017 low while flashing 116.65 on the chart amid initial Asian morning on Monday.
Given the oversold conditions of 14-bar relative strength index (RSI), prices are likely to bounce off a four-week-old falling trend-line, at 116.17, failing to do so can drag it further down towards April 2017 low of 114.85.
On the contrary, 200-bar moving average on the four-hour chart (4H 200MA) and a downward sloping trend-line since August 06 limit the pair’s near-term upside around 119.00/05. Ahead of that, a two-week-old descending resistance-line at 118.00 could question pair’s quick rise.
In a case prices rally beyond 119.05, July 25 low surrounding 120.00 round-figure will flash on the buyers’ radar.
EUR/JPY 4-hour chart
Trend: pullback expected
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.