EUR/JPY: Deeper decline is now on the cards - Natixis

Micaella Feldstein, Research Analyst at Natixis, suggests that the break below 120.70 (daily Bollinger moving average) for EUR/JPY pair has undermined the daily upside bubble, negating any prospect for a rally above 122.70-122.90 (daily Bollinger upper band) in the coming days.

Key Quotes

“A deeper decline towards a support at 118.55118.70 (daily Bollinger lower band) is now on the cards. We’ll be vigilant as a drop below this last threshold would unleash added downside potential, triggering further deterioration in the ST technical patter, with scope to test 117.10 (weekly Bollinger lower band).”

“The resistances are at 120.70-120.90, at 121.65121.80, at 122.70-122.90 and at 123.35-123.46.”