EUR/JPY in danger of further retracement on close below 124.00

By: Adam Button

EUR/JPY is trading at 124.07 but the pair earlier broke below the weekly low of 124.04. The European low is 123.54 and strong buyers are down there so a further decline today is unlikely. Overall, we have had a long uptrend (since 100) and only minimal pullbacks. It would be no surprise to see a further decline to trendline support at 122 or 120. That said, if the pair can close above 124, there is a case to be made for a long with a tight stop.