Posted on March 4, 2015 by the XM Investment Research Desk at 7:36 am GMT
EURJPY has retraced 50% of the rally from 130.13 to 136.68. This Fibonacci retracement level at 133.40 provides support so far. A break below this would strengthen the bearish trend that has been in place since the December 2014 peak of 149.76. This would open the way to retest the 130.13 low. The market is below the Ichimoku cloud and this is highlighting the bearish bias.
The intraday bias is neutral. The upward pointing kijun-sen line is indicative of short-term positive momentum giving scope for prices to rise back up. The February 11 high of 136.68 is an important resistance level as a break above this would bring back the bulls.