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4 Apr 2019
EUR/JPY Technical Analysis: Bulls struggle through 21-DMA and 23.6% Fibo confluence
- Following the bullish RSI divergence, the price subsequently climbed from the 38.2% Fibo and met a target set on the 21-DMA (green on the chart below).
- The continued climb took the 21-DMA into the confluence of the 23.6% Fibo of the same range guarding 126.45 Christmas time double bottom. However, so far, it is this proving a tough nut to crack and the price is stalling there.
- However, a break there, the top of the cloud and trend line resistance guards a break towards the 200-DMA (blue on the chart below) at 127.80.
- On a break of 123.50 to the downside, risk is towards 123.40 (Jan 7 and Jan 15 lows) ahead of the 50% Fibo at 123.18. A break there will likely see the price continue in its southerly trajectory, extending last September's bear trend.
