The EURJPY has reversed the gains from yesterday and early asian session – helped by the lack of action from the Bank of Japan and pressure on the EUR due to higher interest rates in Spain and Italy. The price has moved below the 105.93 level now which is the 38.2% of the move down from the 2012 trading range. Also at the level is the 200 day MA. This level should now be a topside resistance area (up to 106.00). Other upside resistance should come against the 106.23 level (see chart below). Traders will be looking for further downside momentum from here. A move below the March low at 105.63 is the next target to breach, with 104.22 after that level (50% of the 2012 range).
