EUR/JPY Retracing between Fibo levels

The EUR/JPY started the new trading week uplifted and reached intraday high at 131.40, up 0.26% for the day. But couldn’t keep the breeze and go as met high wave that tumbled the pair and currently its thrown into the shallows of 131.00.

As seen on the four hour time frame the pair visited today two important Fibonacci retracement levels of latest April to May bearish run. The 100-day and 200-day SMAs had eased their bearish slopes and are crossing each other around the daily resistance that coincides with the 50% Fibo, while the 20-day SMA is holding to the upside. RSI and stochastic retreated from overbought areas and are showing strong bearish momentum.  

So technically speaking the short-term outlook seems to be bearish. However in the medium-term the trend is bullish and thus seen the current drop might be considered as a pull back before the next attack of the bulls.  First target to meet is the daily high at 131.40 and next comes with the 132.00 figure. The downside is supported by 131.00 followed by 130.78 swing high and then 130.00 swing low.

Key events for the single currency are scheduled for tomorrow with the Eurozone and Germany GDP data and the German Zew survey and in case of surprisingly good numbers can fuel additionally the euro bulls.