EURJPY was unable to sustain gains made after rising to 135.62 yesterday, its highest level in over two years. The pair has fallen sharply and broke below the key 135.00 level today.
The corrective selloff so far has stabilized. But looking at the 4-hour chart, near-term price action still looks a little soft, as RSI has dipped below 50, indicating risk is to the downside.
The recent retracement in EURJPY may extend a little lower towards 134.50. This level is seen as minor support ahead of 134.00.
If the market fails to rise and regain the 135.00 handle soon, then the recent bullish phase will likely lose momentum and EURJPY will essential stay in the broader range that it has been trading in since September, as seen on the daily chart.
