The bounce off from the resistance of the 129.00 level eventually passed technical support levels on Friday morning. Namely, the EUR/JPY declined below a support zone, the 50 and 200-hour SMAs and the weekly R1 simple pivot point. However, by the start of the day’s European trading hours, the pair found support in the 128.00 mark and slightly recovered.
A potential surge of the rate would most likely find resistance in the combination of the 50-hour simple moving average and the weekly R1 simple pivot point at 128.42/128.50. Above these levels, the 129.00 level and the zone above it is set to act as resistance.
On the other hand, a decline of the rate would have to pass the 128.00 mark before aiming at the weekly simple pivot point at 127.91. Below the pivot point, note the low level zone at 127.40/127.65
