EUR/JPY Price Analysis: Euro paring last Friday’s losses vs. yen

 

 

 

 

EUR/JPY formed a head-and-shoulders pattern while currently trading above the 121.00 handle and the main daily simple moving averages (SMAs).

 

 

After the selloff near the 120.00 handle, the market is having a sharp bullish reversal trading now above the 200 SMA on the four-hour chart. The market is likely to keep climbing in the medium term as bulls can set their eyes on the 121.62 and 122.12 price levels. Further up lies the 122.63 level. Support can be seen near the 121.11, 120.73 and 120.48. A break below the latter can lead to a spike down to 119.90, according to the Technical Confluences Indicator.