Correction to 38.2% held. Can the support be broken
The EURJPY fell sharply in trading yesterday, but stalled near recent low swing levels for the pair (see blue circles in the chart below). The correction in trading here today took the price up to the 38.2% retracement were sellers reentered. The last few minutes of seen a sharp fall in the pair and it is back down testing the support area near the 133.50 level. This is a key test and key area for traders. Holding that level would frustrate the shorts, and could see a rebound back higher. Breaking below - and staying below - would have traders anticipating another leg down, with 133.00 and 132.54 area as the next targets.