EUR/JPY is withing shouting distance of critical resistance at 133.35, the trendline broken to the down-side overnight which lead to accelerated losses. A break back above that level will prompt further short-covering and have technicians looking at a potential double bottom in the 131.40/70 region.
Model funds were huge sellers of this cross today and if they are stopped out it will just extend a pattern that has been in place for recent months.
EUR/JPY trades now at 133.09, a bounce over more than 1.25 yen. EUR/USD is up at 1.3967 and USD/JPY is at 95.27.
