EUR/JPY bounced off lows just under 128.00 earlier today
The pair currently trades at 128.41, back above the low today of 127.98. The low tested the support level from 11 August @ 128.04 and the the pair subsequently bounced back following that.
It's an interesting time for the pair as it looks to firmly close below the 38.2 retracement level @ 128.85. That opens up more conviction for sellers to drive the pair lower. But getting through the first minor support will be key.
A break of 128.04 and below 128.00 then opens up a move towards the August low @ 127.56 and a break there will leave the pair in a sort of free fall mode towards the 50.0 retracement level @ 126.18 and the 125.00 figure level.
A lot of the move in the last two days have been exacerbated by risk sentiment, so be wary if the market starts to turn around once the fear fades. Situations like this are always more tricky to trade, but for now indubitably sellers remain in control of the pair.
------
