EURJPY gapped down at the open of trading on Monday, opening in Asia at 135.07 versus Friday’s New York close at 138.37. Prices fell below the 200-day moving average all the way down to the top of the daily Ichimoku cloud and the 50% Fibonacci of the 126.08 to 141.04 rise.
The intra-day bias will remain bearish below the 200-day moving average and as long as the RSI is in bearish territory below 50. The 50% Fibonacci at 133.56 will provide support for downside moves. For now there has been a rebound after prices failed to sustain below the 38.2% retracement of 135.33. A break back above the 200-day moving average and above the 23.6% Fibonacci would see the market back into the consolidation pattern it was in since the beginning of June.
In the bigger picture, prices would have to break the high of 141.04 to resume the uptrend it was in from the bounce in April from 126.08.
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