EUR/JPY Price Analysis: Euro set to extend losses, next target at 120.00
|- The worst day for equities since April weighs on EUR/JPY.
- Euro drops for the fourth day in a row versus the yen, oversold but with more room for losses.
The EUR/JPY pair accelerated to the downside after falling below the 121.30/40 support area. It bottomed at 120.80 and climbed back toward 121.00.
A consolidation below 121.00 would keep the pressure on the euro intact. The next strong support area is seen at 120.00, with interim support around 120.50. If reached in the short-term, a bullish correction from 120.00 seems likely.
The short-term bias will continue to favor the downside, as long as it holds below 122.00 (downtrend line and the 21-SMA in 4-hour chart). If EUR/JPY rebounds and rises above 122.00, it would alleviate the pressure. The next resistance stands at 122.60.
EUR/JPY 4-hour chart
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