#EURJPY @ 143.172 A conclusion of H&S formation will bring a sheer downside move. (Pivot Orderbook analysis)

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• A conclusion of H&S formation will bring a sheer downside move.
• The 50-and 200-EMAs have turned flat which indicates a slowdown in upside momentum.
• A bearish range shift by the RSI (14) will weaken the shared currency bulls.

The pair currently trades last at 143.172.

The previous day high was 144.48 while the previous day low was 142.3. The daily 38.2% Fib levels comes at 143.13, expected to provide support. Similarly, the daily 61.8% fib level is at 143.65, expected to provide resistance.

The EUR/JPY pair is falling sharply after the conclusion of a short-lived pullback towards 143.50 in the Asian session. On a broader note, the pair is in a correction mode after failing to sustain around a multi-year high, recorded on Monday at 145.63.

The ongoing formation of a Head and Shoulder chart pattern on an hourly scale is claiming more weakness in the counter ahead. Usually, an H&S formation denotes a tad longer inventory distribution, which leads to a sheer downside after a breakdown.

The cross has surrendered the support of the 50-period Exponential Moving Average (EMA) at 143.39 and is declining further towards 200-EMA at 142.83.

Meanwhile, the Relative Strength Index (RSI) (14) is oscillating in a 40.00-60.00 range and is expected to skid inside the bearish range of 20.00-40.00, which will trigger a downside momentum.

A decisive break below Wednesday’s low at 142.30 will drag the cross towards September 7 low at 141.41, followed by September 2 high at 140.75.

Alternatively, a break above September 9 high at 144.73 will send the cross towards Monday’s high at 145.64. A breach of the latter will drive the asset in unchartered territory towards the round-level resistance at 147.00.

Technical Levels: Supports and Resistances

EURJPY currently trading at 143.17 at the time of writing. Pair opened at 142.65 and is trading with a change of 0.36 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 139.88, 50 SMA 138.7, 100 SMA @ 138.85 and 200 SMA @ 135.12.

The previous day high was 144.48 while the previous day low was 142.3. The daily 38.2% Fib levels comes at 143.13, expected to provide support. Similarly, the daily 61.8% fib level is at 143.65, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 141.8, 140.96, 139.62
• Pivot resistance is noted at 143.99, 145.33, 146.17

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