EURJPY accelerated its downside momentum after breaking below the 50-day moving average on April 5 at 126.85. Prices subsequently extended lower, falling below key levels such as the 50% Fibonacci retracement (125.14) of the 122.06 to 128.21 rise (the March rally), and then below the key 124.00 level. On Thursday there was a dip to a one-month low of 122.53. Prices have rebounded slightly on Friday but 124.00 remains a key resistance level now. Risk remains to the downside as the RSI has fallen below 50 into bearish territory. Support lies at the March 1st multi-year low of 122.06. A drop below this would see a resumption of the long term downtrend.
The long term technical picture is bearish as the pair has been making lower lows and lower highs since June 2015 (141.04). All three moving averages (50,100 and 200 day) are falling, and the market is below them, so this also highlights the bearish bias.
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