EURJPY was a major casualty overnight as seen with many risk assets. With Wall St dropping nearly 2%, major flows out of EUR, AUD, NZD and other risk currencies was seen.
Technically EURJPY has broken well clear of its Ichimoku cloud and is now under the 100 day MA as well. If 131.00 breaks, technical traders are targetting the 200 day MA, down at 128.50. This morning we touched the 61.8% Fibo retracement level, 131.40, of the move up from 127.00 to 138.70 and have bounced a little from there. There will be some buyers here, but a break under 131.00 should see a capitulation.
Order wise, Im hearing of some buyers just ahead of 130.00 but nothing serious.
Traders await the open of the Shanghai Composite.
