The EUR/JPY pair has been moving downwards since the 11th of March 2016, with the bearish pressures being noticed from as high as 127.27 to as low as 125.37.
During the course of the day on Monday, the pair moved on the sidelines at around 127.06, to end the day lower at 126.08. Today, the pair initially attempted a bounce to the upside, but found enough resistance at 126.68 to correct lower, reaching the bottom of 125.37. In the event that the sellers keep exerting strong pressures, the pair could head down to 125.15 and 124.66 respectively.
On the flip side, in the scenario where the cross attempts to test the 126.81 level once again and manages to successfully break above it, the pair could escalate up to 127.27 and 128.46 in extension.
Please note: The content in this daily technical analysis article should not be taken as investment advice. It comprises our personal view.