EUR/JPY Technical Analysis: Scope for a challenge of 2018 lows in the 124.60 region

• EUR/JPY is extending the leg lower further south of the 127.00 key support, opening the door for potential deeper pullbacks in the near term.
• The cross has intensified the downside after breaking below the critical support at 129.00 the figure earlier in the month. EUR/JPY is challenging June’s lows in the 126.60 region at the moment, and if cleared, the immediate target will be 126.20 (78.6% Fibo retracement of the May-July rally) ahead of 2018 lows in the 124.60/65 band (May 29).
• Occasional rebounds (albeit unlikely for the moment) should be strong enough to clear the 129.00 neighbourhood on a sustainable fashion, while a surpass above the 130.40 area should reassert the upside pressure and allow a test of the key 200-day SMA at 131.64.

EUR/JPY daily chart

Daily high: 128.13

Daily low: 126.43

Support Levels

S1: 127.70

S2: 127.36

S3: 126.68

Resistance Levels

R1: 128.73

R2: 129.41

R3: 129.76