EURJPY touched a fresh 2 ½ year low at 125.37 on Friday. The pair fell further within the descending channel that started back in June 2015 when prices fell from the high of 141.04.
The technical indicators are supporting a bearish bias, as can be seen by MACD, which is below zero. The moving averages are negatively aligned and falling. The 50-day moving average crossed below the 100 and 200-day moving averages in September 2015, giving a bearish signal.
Immediate support lies at the April 2013 low of 124.89 and below this the February 2013 low of 118.72. To the upside, a strong resistance level lies at the key 130 yen level.
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