The EURJPY pair fell further this week, breaking its moving averages after moving below its uptrend line last week. The 130.000 level is now the next support area traders are watching. A loss of this area puts the focus on the previous lows at 129.604 and 128.943. A move down to 128.783 could find buyers but retesting this level may only give a weak bounce this time, with a retest of resistance confirming the bearish continuation pattern and targeting 125.500 in extension.
Resistance today comes in at 131.000 and the 200 DMA at 131.108. A break higher from here would likely retest 131.800 and the 50 and 100 DMAs at 131.878 and 132.112 respectively. A move to the previous high at 133.500 could see shorts squeezed and a dash to 135.000 or higher to 136.300. The 137.500 level is the ultimate target for longs.
The index has been pushed higher from Wednesday’s breakout, with a back-test of the supporting area, formally resistance, shown on the chart. The current action shows the price in a holding pattern as it awaits Non-farm payrolls and wage data from the US today. USD has been driving some of the moves, with EURUSD falling and boosting DAX longs. Whether this advance succeeds or not will pivot on the reaction to this event today. A continued move higher targets 12900.00 and 13000.00, followed by 13350.00 and the previous highs at 13535.00 and 13600.00.
Supports fill the area between 12680.00 and 12470.00, with a higher low at 12309.50. A loss of this area puts bears back in control and free to target 12000.00 and the rising blue trend line at 11854.00. Further support is found at 11681.20 and the supporting trend line at 11575.00.