- EUR / JPY leaves Monday’s gains behind and retests 131.50.
- More losses await on a breakout of mid-131.00.
Sellers returned to the market and dragged EUR / JPY back into negative territory on Tuesday’s turnaround.
The cross fades the constructive price action on Monday and refocuses once again on the 131.50 area, which is still emerging as a fairly strong support area. This zone is also reinforced by a Fibonacci level (from the October rally) at 131.51. The loss in this area is expected to reach the next Fibonacci level at 130.97.
In the broader scenario, while above the 200-day SMA at 130.26, the outlook for the crossover is expected to remain constructive.
Daily chart
Technical levels
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
