EUR/JPY at Risk of Further Losses, 131.00 Holds The Key
- EUR/JPY started a fresh decline below the 131.00 support zone.
- A major bearish trend line is forming with resistance near 131.15 on the 4-hours chart.
- EUR/USD is consolidating losses above the 1.1780 support.
- GBP/USD could attempt a decent increase above the 1.3900 resistance zone.
EUR/JPY Technical Analysis
The Euro started a steady decline from well above 132.00 against the Japanese Yen. EUR/JPY traded as low as 129.62 before it started an upside correction.
Looking at the 4-hours chart, the pair was able to correct above the 130.50 resistance level. It even recovered above the 23.6% Fib retracement level of the key decline from the 132.40 swing high to 129.62 low.
However, the pair failed to surpass the 131.00 resistance. It also remained well below the 100 simple moving average (red, 4-hours) and the 200 simple moving average (green, 4-hours).
The pair faced sellers near the 50% Fib retracement level of the key decline from the 132.40 swing high to 129.62 low. There is also a major bearish trend line forming with resistance near 131.15 on the same chart.
To move into a positive zone, the pair must surpass the 131.00 and 131.15 resistance levels. If not, there could be a fresh decline below 129.80. The first key support is near 129.65, below which the pair could decline towards 128.80.
Looking at EUR/USD, the pair is consolidating above 1.1780 and it must climb above 1.1850 to start a decent increase. Similarly, GBBP/USD must settle above 1.3900 to start a steady recovery.
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