With EURJPY following through lower on the back of its past week losses and testing its .618 Feb Ret (its 131.21 -145.61 rally) located at the 136.54 level, the risk is for price extension to occur.
Support comes in at the 136.00 level with a cut through that level setting the stage for a run at the 135.50 level and possibly lower towards the 135.00 level, its psycho level.
Further down, support comes in at the 134.50 level. Its daily RSI is bearish and pointing lower supporting this view. On the other hand, resistance resides at the 138.65 level, its Feb 03’2014 high.
Further out, resistance comes in at 139.49 level, its Jan 31 2014 high. Further out, resistance resides at the 140.00 level and subsequently the 140.50 level, marking its psycho level. All in all, the cross remains biased to the downside.
Guest post by FX Tech Strategy
