- EUR / JPY continues to move in ranges, with a bearish bias.
- The dominant trend points to the downside, further losses below 127.50.
- Gains below 129.00 should be considered corrective.
The EUR/JPY it is falling in the closing hours of Tuesday’s session after peaking. You have now trimmed all of Monday’s earnings. The euro peaked near 128.50 and then fell back. It failed to stay above 128.00, showing that it continues to face pressure.
The main trend is bearish and the EUR / JPY looks ready to test the lower zone. The key level to watch on the downside is 127.50. A daily close below should point to more losses, with an immediate target at 127.00, followed by 126.70.
Technical indicators are giving mixed signals, affected by consolidation moves in a small range. RSI turns south, but Momentum maintains a positive slope. Despite being unable to confirm levels above 128.00, the decline has so far been limited.
If the euro breaks out and records a close above 128.00, it would gain momentum for a test of 128.50. A daily close above 130.00 should be a potential sign that the euro has probably set an interim low.
Additional technical levels