EURJPY recently reversed down from the resistance zone located between the key resistance level 122.500 (which reversed the price twice in December, upper daily Bollinger Band and the sharp downward impulse from April and the 61.8% Fibonacci correction of the previous downward impulse from April. The downward reversal from this resistance zone stopped the previous impulse wave 3. Given the overbought daily Stochastic and the the moderate bullish Yen sentiment seen across the markets today – EURJPY is likely to extend the losses toward the next support level 122.000. Strong resistance remains at the resistance level 122.500.
