- EUR / JPY extends the downward correction to the 126.00 area.
- Weekly lows in the 125.60 area emerge as the next support.
EUR / JPY bearish momentum remains good and solid for now, although the 126.00 area has emerged, for now, as fairly solid support. The proximity of the 21-day SMA near 126.20 also reinforces this area of contention.
Bearish pressure is expected to find initial and minor support at the 55-day SMA at 125.86 and enable a potential EUR / JPY slide to last week’s lows near 125.60 (Jan 27) in the near term.
From a broader perspective, as long as it remains above the 200-day SMA at 123.33, the cross should remain bullish.
EUR / JPY day chart