EUR/JPY Technical Analysis: Resumption of the downtrend could see 128.00 tested

• EUR/JPY is bouncing off session lows following a sharp drop in the Japanese safe haven, particularly after the solid prints from US Non-farm Payrolls during last month.
• The cross is reverting yesterday’s drop, although it remains under pressure and closer to the critical 21-day SMA, today at 128.16. A loss of this handle could open the door for a re-test of recent lows at 124.88 (August 15).
• Interim supports, however, aligns at 127.61 and 126.57, the 50% and 38.2% Fibo retracements of the July-August drop, respectively.

EUR/JPY daily chart

Daily high: 129.12

Daily low: 128.21

Support Levels

S1: 128.19

S2: 127.66

S3: 126.83

Resistance Levels

R1: 129.56

R2: 130.40

R3: 130.93