FX.co ★ Technical analysis of EUR/JPY for May 27, 2016

According to the daily chart, EUR/JPY is clearly trending down. The pair rejected the 200D Moving Average and broke below the descending channel.

Fibonacci applied to the channel breakout point shows that during this week pair rejected the R1 (124.00) resistance for several times and could now be ready to move lower once again. At the same time, the price broke below the S1 (122.00) support with the daily close below it.

Consider selling EUR/JPY at the current rate (122.65) targeting the S2 (118.80) support level. The stop loss should be just above the R1 (124.00)

Support: 122.00, 118.80

Resistance: 124.00, 125.55, 127.15