Price on EUR/JPY has consolidated around 139 and 144 for the past few months. The recent 5-day losing streak is making new lows that has price trending well below the 50-day and 100-day Simple Moving Averages. If downward pressure continues, immediate support will come from the 200-day SMA at 137.80.
If the momentum in the selloff in the euro and recent strength in the yen continue a move may ultimately target a move towards 134.30, which happens to be the 127.2% Fibonacci expansion level of the B to C move. It is around that area that price may form a bullish Gartley pattern that may finally put an end to the downward move. Major resistance will come from the psychological 140 handle.
Edward J. Moya
WorldWideMarkets Online Trading