The Euro was seen struggling against the Japanese yen despite the fact that the latter one weakened a lot. The EURJPY pair broke an important support area, which has opened the doors for more downside in the near term. The Japanese bank lending data was released earlier during the Asian session today, which registered an increase of around 2.7%, which was more than the last time reading of 2.3%. The Japanese yen traded a touch higher after the release. It also weighed on the EURJPY pair which traded lower.
There was a bullish trend line formed on the hourly chart of the EURJPY pair, which was beached earlier during the Asian session. The pair looks like heading towards the 50% fib retracement level of the last leg from the 148.10 low to 149.77 high where there is a chance that the Euro buyers might try to protect the downside in the near term. Any further losses might take the pair towards the last swing low as the FX market sentiment is currently against the Euro buyers. The hourly RSI is around the 50 level, and if it breaks down it would put further pressure on the Euro bulls. The most important support for the EURJPY pair is seen around the 100 hourly moving average which is sitting around the 148.20 support area.
On the upside, initial resistance is around the broken trend line. Any further gains should take the pair towards the last swing high of 149.77 level.
Overall, one might consider selling rallies as long as the pair is trading below the last high of 149.80.
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Posted By IKOFX Technical Team: Online Forex Broker
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