EUR/JPY Price Analysis: Break under 127.50 to trigger more losses
|- EUR/JPY hold in range, with key levels at 127.50 and 128.00.
- Dominant trend points to the downside, but some positive sign for the euro emerge.
- Gains below 129.00 should be seen as corrective.
The EUR/JPY is rising on Monday, trading in a familiar range. The main trend is to the downside. In the very short-term the consolidation could continue as technical indicators are moving away from oversold levels, still not showing much strength on the upside.
The key level to watch on the downside is 127.50. A daily close below should point to more losses, targeting initially 127.00 and then 126.70; a move in line with the dominant trend. The yen still looks set to drops further. The weekly chart shows the euro has fallen over the last seven weeks, and the RSI is starting to turn to the upside, a positive sign for the common currency.
On the upside a recovery above 128.00 would alleviate the bearish pressure. The up move could extend to 129.00; even a recovery toward the mentioned level should be seen as a correction. A daily close above 130.00 would suggest the euro has probable established an interim bottom.
EUR/JPY daily chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.