- EUR / JPY remains in range, with key levels at 127.50 and 128.00.
- The dominant trend points to the downside, but some positive signs are emerging for the euro.
- Gains below 129.00 should be considered corrective.
EUR / JPY is rising on Monday, trading in a familiar range. The main trend is downward. In the very short term, consolidation could continue as technical indicators are moving away from oversold levels, still not showing much upside strength.
The key level to watch on the downside is 127.50. A daily close below should point to further losses, initially targeting 127.00 and then 126.70; a move in line with the dominant trend. The yen still appears to be on the verge of falling further. The weekly chart shows that the euro has fallen for the past seven weeks, and the RSI is starting to turn higher, a positive sign for the common currency.
On the upside, a recovery above 128.00 would ease the downward pressure. The bullish move could extend to 129.00; even a recovery towards the mentioned level should be seen as a correction. A daily close above 130.00 would suggest that the euro has likely established an interim bottom.
Technical levels
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