In the battle of the biggest losers, it’s the euro that’s winning out over the yen but a few elements are lining up for a move.

EUR/USD is flirting with the 1.23 level and USD/JPY with 120.00. If those levels hold or break, it could write the next chapter in EUR/JPY. The ECB decision tomorrow is also a major risk.

If the ECB is dovish, there is significant downside risk here, especially with the weekly RSI at elevated levels. But in the longer-term the 167 level still beckons.

EURJPY with weekly RSI

EURJPY with weekly RSI