fxstrategist
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The EUR/JPY breaks below the 129.00 level and reaches the 128.14 zone where it finds a good support area. The 128.14 level is not just any support level, the zone has acted as support in the past, but most importantly, at that level we can find the 200 week EMA and the 55 month EMA. The pair bounces to the upside from the 128.14 level and reaches the 129.00 level which could act as resistance. The 55 day EMA has crossed below the 200 day EMA, forming a death cross pattern, which has bearish implications in the midterm. This means that in the short term, the EUR/JPY may try to retrace to the upside, but in the midterm, the pair may continue falling. Below the 128.14 level, the EUR/JPY may have the road clear to fall to the 125.00 level.
