EUR/JPY technical analysis: Sellers hold the reins until breaking 122.95/123.00 confluence

• Nearness to important resistance-confluence, overbought RSI signal pullback.
• 4H 100-MA seems nearby support to watch.

EUR/JPY’s week-long gradual recovery is close to important resistance-confluence as it trades near 122.65 during the early Asian session on Tuesday.

200 bar moving average (4H 200 MA), five-week long descending trend-line and 50% Fibonacci retracement of latest downpour from May top together constitute 122.95 – 123.00 area as a tough nut to crack for buyers. The 14-bar relative strength index (RSI) also seesaws close to overbought category.

With the strong resistance nearby and overbought RSI, prices are more likely to revisit 4H 100MA level of 122.30 while 122.00 and 121.20 can entertain sellers then after.

Alternatively, sustained break of 123.00 can quickly propel the quote towards 61.8% Fibonacci retracement level near 123.55.

Also, pair’s successful rise past-123.55 enables bulls to aim for May 06 high near 124.30.

EUR/JPY 4-Hour chart

Trend: Pullback expected