EUR/JPY Technical Analysis: Remains capped below 100-day SMA post-Draghi
• The cross faced rejection near 100-day SMA and erased daily gains following a downward revision of the ECB's growth/inflation forecasts.
• The said barrier coincides with the top end of a one-month-old trading range, constituting towards the formation of a rectangle on the daily chart.
• A rectangle is usually seen a continuation pattern that suggests a pause in the trend - bearish in this case, but sometimes mark significant trend tops/bottoms.
• Meanwhile, technical indicators on the mentioned chart are hovering in the neutral zone and haven't been supportive of any firm near-term direction.
• Hence, it would be prudent to wait for a breakthrough the mentioned range before traders start positioning for the pair's next leg of a directional move.
EUR/JPY daily chart
Today Last Price: 128.8
Today Daily change: 10 pips
Today Daily change %: 0.0777%
Today Daily Open: 128.7
Previous Daily SMA20: 128.6
Previous Daily SMA50: 128.9
Previous Daily SMA100: 129.21
Previous Daily SMA200: 129.75
Previous Daily High: 128.88
Previous Daily Low: 128.29
Previous Weekly High: 129.3
Previous Weekly Low: 127.61
Previous Monthly High: 130.16
Previous Monthly Low: 127.5
Previous Daily Fibonacci 38.2%: 128.65
Previous Daily Fibonacci 61.8%: 128.52
Previous Daily Pivot Point S1: 128.37
Previous Daily Pivot Point S2: 128.03
Previous Daily Pivot Point S3: 127.78
Previous Daily Pivot Point R1: 128.96
Previous Daily Pivot Point R2: 129.21
Previous Daily Pivot Point R3: 129.55