EUR/JPY technical analysis: Bulls capped by 21-DMA, bears seek break of 117.50s

• EUR/JPY has been finding tough resistance at the 21-day moving average.
• 117.55/52 as being the August 12 and September 12 lows opens risk to 116.58/115.87 recent lows.

EUR/JPY has been finding tough resistance at the 21-day moving average in a sideways chop on the daily charts as traders wait for geopolitical developments to unfold. However, in the meantime, the market does appear to be on the defensive with a bias leaning to the downside.

A break below the current support at 117.55/52 as being the August 12 and September 12 lows opens risk to 116.58/115.87 recent lows. A break there will open risk to the 2017 low at 114.86. On the upside, with the downside trendline in mind around 118, analysts at Commerzbank argued that, "rallies will find resistance offered by the downtrend at 118.88 and this resistance is reinforced by 120.05, the 38.2% retracement. And while capped here the market will remain offered. The 55-day ma offers additional resistance at 118.51."

EUR/JPY daily chart