#EURJPY @ 136.675 -imp levels: bounced off weekly lows at around 135.51 due to improved sentiment.

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• EUR/JPY bounced off weekly lows at around 135.51 due to improved sentiment.
• From a monthly chart perspective, an August close below 135.54 would keep sellers in control.
• The EUR/JPY weekly chart depicts the formation of a head-and-shoulders chart pattern, targeting the YTD lows around 124.00.

The pair currently trades last at 136.675.

The previous day high was 137.06 while the previous day low was 135.73. The daily 38.2% Fib levels comes at 136.24, expected to provide support. Similarly, the daily 61.8% fib level is at 136.55, expected to provide support.

The EUR/JPY edges higher during the day, above the 136.50 figure, for the first time in the week, snapping two days of consecutive losses as the New York session finishes. As the Asian Pacific session starts, the EUR/JPY is trading at 136.67, with marginal gains of 0.01%.

From the monthly chart perspective, the EUR/JPY shows traders undecided, about to form a dragonfly-doji, after July staggering loss of 4.24%, created a bearish-engulfing candle pattern, which initially drove prices towards August lows around 133.39. If the EUR/JPY fails to achieve a monthly close below 135.54, July’s low will pave the way for further losses. Otherwise, expect prices to seesaw around the 136.20-138.40 area.

Meanwhile, the EUR/JPY weekly chart suggests forming a head-and-shoulders chart pattern, pending to break below the neckline around the 133.00-134.00 area for confirmation. Once achieved, the EUR/JPY profit target will be the 124.00 mark, below the YTD lows at 124.39.

Technical Levels: Supports and Resistances

EURJPY currently trading at 136.68 at the time of writing. Pair opened at 136.37 and is trading with a change of 0.23 % .

The pair is trading below its 20 Daily moving average @ 136.81, below its 50 Daily moving average @ 139.04 , below its 100 Daily moving average @ 138.22 and above its 200 Daily moving average @ 134.15

The previous day high was 137.06 while the previous day low was 135.73. The daily 38.2% Fib levels comes at 136.24, expected to provide support. Similarly, the daily 61.8% fib level is at 136.55, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 135.71, 135.05, 134.38
• Pivot resistance is noted at 137.05, 137.72, 138.38

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