Euro Japanese Yen
EUR/JPY drops below key Fib level as downside continues
Today was another down day for EUR/JPY, in the last sessions, during which time the pair has dropped from above 130 to current levels around 130 (a 1.5% decline). On the face of it,
Thursday’s 0.1% drop hardly feels significant, but from a technical perspective, things are more interesting,
as the pair dropped below a key 50% Fibonacci retracement level between the summer lows just above 128.00 and the October high around 133.50.
EUR/JPY also seems to have cracked below its 50-day moving average (DMA) at 130, but faces significant
opposition if it wants to continue to depreciate in the form of the 200DMA at 130, which also coincides with the late September high.
Should the pair break below these next key levels of support, the door will be open for a run lower towards the next key fib level (the 61.8% retracement) at just above 130