The Euro declined heavily after it failed to stay above the 125.70 support area against the Japanese Yen. The EUR/JPY pair broke the 125.50 and 125.00 support level to enter a bearish trend.
The pair even traded below the 124.00 support and settled below the 50 hourly simple moving average. A low was formed at 123.83 on FXOpen UK and later the pair started an upside correction above the 124.00 level.
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On the upside, there are many hurdles for buyers near the 125.00 level, the 50% Fib retracement level of the last decline from the 126.17 high to 123.83 low, and a bearish trend line on the hourly chart.
On the downside, an initial support is near the 124.30 level. If there is a downside break below 124.30, there could be additional losses below the 124.20 and 124.00 support levels in the coming sessions.
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