EUR/JPY Technical Analysis: Further downside lies on a break below the 55-day SMA at 129.00

• The inability of EUR/JPY to regain/surpass the 131.00 handle motivated sellers to return to the markets, dragging the cross to the current 129.00 neighbouhood, where is located the 55-day SMA and a retracement of the May-July up move.
• The loss of the 129.00 area could spark a deeper retracement to, initially, the 21-day SMA at 128.09. If the downside impulse gathers traction, June’s low in the 126.60 region should be back to the radar.
• Further south, recent lows in the 125.00 region are the latest defence of a visit to YTD lows at 124.60 seen in late May.

EUR/JPY daily chart

Daily high: 129.86

Daily low: 128.90

Support Levels

S1: 128.99

S2: 128.47

S3: 127.53

Resistance Levels

R1: 130.46

R2: 131.41

R3: 131.93