The EURJPY fell in tandem with the fall in the USDJPY, however, the price has found a reason for the traders to buy/take some profits. The bottom trendline connected 4 different points broke but failed. This gave traders cause for concern and the price has rebounded.
Traders will now:
- Look for any continuation of the buying through the 105.90 area.
- If the market can not get above this 1st resistance target, the downside trendline could continue to be tested.
- A break should trigger stops and continued downside momentum. However, key support is not far away at the 105.49 where the 200 day MA is found (see chart below). This will also be a tough level on the 1st test to break.
