EUR/JPY is trading lower at 129.92 level versus 130.14 yesterday's high. The price may challenge again a static support area soon. It's located above an important downside obstacle, only a valid breakdown and a new lower low could really signal a sell-off.
You should be careful today as the ECB could change bring high volatility. Also, the sentiment may change if the ECB Press Conference is hawkish. The Main Refinancing Rate is expected to remain steady at 0.00%.
EUR/JPY Stands On Support!
EUR/JPY plunged in the short term from above the weekly resistance R1 (130.66) signaling a potential corrective phase. Its failure to stabilize above the upper median line (UML) or to reach the 150% Fibonacci line signal exhaustion, an overbought.
Now the pair is trading above the weekly S1 (129.85) which it continues to hold. A valid breakdown below this static support and a new lower low could really announce a broader corrective phase.
Forecast!
Closing below 129.63 yesterday's low is seen as a selling opportunity. Also, a valid breakdown below the ascending pitchfork's median line (ML) could signal a strong drop.
The material has been provided by InstaForex Company - www.instaforex.com