EURJPY breaks below head and shoulders neckline

The JPY is the runaway strongest of the major currencies. The EUR is the weakest. That makes the EURJPY the biggest currency pair mover. Currently the price is down -2.54% at 133.14 the low price reached 132.67. The high price was at 136.64.

Looking at the daily chart above, the sharp move to the downside, cracked below a neckline trendline in a head and shoulders formation. That level was broken near 135.10. The price also moved below the 38.2% retracement of the move up from the March low to the April high. That retracement level comes in at 134.032.

Other swing high levels going back to June 2021 come in between 134.11 (the high from June 2021) on the topside and 133.164 (the low price from February). The low price stalled ahead of the rising 100 day moving average currently at 132.25, and the 50% midpoint of the same move up from the March low at 132.19.

Moving below those levels would open the door for further downside potential and tilt the bias more in the favor of the sellers. However, I would expect the buyers against the levels on the first test (with stops below).