EUR/JPY Technical Analysis: Nears key 38.2% Fib support with biggest single-day drop since March 22

Omkar Godbole FXStreet Contributor

EUR/JPY fell 0.67 percent yesterday, the biggest single-day decline since March 22, neutralizing the bullish view put forward by the falling channel breakout on April 12.

With the shape slide, the pair has inched very close to 125.60, which is the 38.2 percent Fibonacci retracement of the rally from 123.65 to 126.81. The 38.2% and 61.8% Fib retracements are widely considered as strong technical levels by traders.

A break below 125.60, therefore, could invite selling pressure, leading to a deeper drop to 124.78 (April 10 low).

A close above 126.81 is needed to revive the bullish outlook.

As of writing, the pair is trading at 125.75, having clocked a session high of 125.85 earlier today. The Bank of Japan trimmed its routine purchases of long-dated bonds today, so far, the central bank's move has not had any impact on the JPY pairs.

Daily chart

Trend: Bearish below 125.60

EUR/JPY

Overview
Today last price	125.78
Today Daily Change	0.03
Today Daily Change %	0.02
Today daily open	125.75

Trends
Daily SMA20	125.24
Daily SMA50	125.53
Daily SMA100	125.74
Daily SMA200	127.58

Levels
Previous Daily High	126.62
Previous Daily Low	125.64
Previous Weekly High	126.78
Previous Weekly Low	124.78
Previous Monthly High	127.52
Previous Monthly Low	123.64
Daily Fibonacci 38.2%	126.02
Daily Fibonacci 61.8%	126.25
Daily Pivot Point S1	125.39
Daily Pivot Point S2	125.03
Daily Pivot Point S3	124.41
Daily Pivot Point R1	126.37
Daily Pivot Point R2	126.99
Daily Pivot Point R3	127.35

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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