- EUR / JPY corrects lower from the peaks near 133.50.
- Further weakness should see support found at the 131.00 area.
EUR / JPY retreats further after Wednesday’s new highs for this year in the 133.50 region.
While the ongoing knee-jerk reaction is considered only corrective, it is expected to reach initial support in the neighborhood of 131.00, or May lows. A break out of this area has the potential to extend the bearish leg to the 130.70 zone, where the 50-day SMA and the immediate support line (from the March low) converge. This area should maintain weakness and cause rebounding.
In a bigger picture, as long as the cross remains above the 200 SMA at 126.80, it should continue with a bullish outlook.
EUR / JPY day chart
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