EUR/JPY drops to 119.00, 4-week lows

The euro fell across the board after reports signaled that European Central Bank policymakers were wary about a potential surge in yields. EUR/JPY tumbled to 119.00 and currently trades at 119.30, 80 pips below yesterday’s closing price. 

The pair is holding below last week lows and under the 119.50 support zone. The bearish tone prevails from a technical perspective, particularly after the recent slide. 

Recent movements represent also an important reversal. Earlier today it rose above the 120.30 zone, hitting at 120.43, the highest level in week, and then bounced sharply. In a few hours, the pair was rejected from above a resistance zone and tumbled breaking the 119.50 barrier. 

The pair is suffering the biggest daily decline in more than a month. If it breaks below 119.00, attention would turn to 2017 lows, that lie at 118.20/25. On the opposite direction, the euro needs to rise and hold above 119.50 in order to remove the short-term bearish pressure.