- EUR/JPY is extending the leg lower further south of the 127.00 key support, opening the door for potential deeper pullbacks in the near term.
- The cross has intensified the downside after breaking below the critical support at 129.00 the figure earlier in the month. EUR/JPY is challenging June’s lows in the 126.60 region at the moment, and if cleared, the immediate target will be 126.20 (78.6% Fibo retracement of the May-July rally) ahead of 2018 lows in the 124.60/65 band (May 29).
- Occasional rebounds (albeit unlikely for the moment) should be strong enough to clear the 129.00 neighbourhood on a sustainable fashion, while a surpass above the 130.40 area should reassert the upside pressure and allow a test of the key 200-day SMA at 131.64.
EUR/JPY daily chart
Daily high: 128.13
Daily low: 126.43
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these securities. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Forex involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.