EUR/JPY technical analysis: Reversal from 12-day top signals 200-HMA re-test

• Failure to cross mid-month high, overbought RSI triggered EUR/JPY declines.
• 200-HMA, 38.2% Fibonacci retracement confluence can question the latest downpour amid RSI drop.

Having failed to clear the late-June 13 top drags the EUR/JPY pair to short-term key support confluence as it takes the rounds to 121.95 ahead of the European open on Tuesday.

While 200-hour moving average (200-HMA) and 38.2% Fibonacci retracement of recent declines strengthens the 121.80 mark as a support confluence, pair’s further downside is less likely considering expected stabilization past steep drop in the 14-bar relative strength index.

Should bears refrain from respecting 121.80 rest-point, 121.30 and 121.00 could be next on their radar.

Alternatively, 122.21 and aforementioned horizontal-line near 122.48 could keep restricting the pair near-term upside.

Also, a successful break of 122.48 enables buyers to aim for 122.73 and month’s top close to 123.18.

EUR/JPY hourly chart

Trend: Bearish