EURJPY Drops From Fresh Yearly Highs at 126.77 Level

EURJPY Price Analysis – August 28

Upside risks have controlled the single European currency against the Japanese Yen since the prior trading session. EURJPY drops nearly 70-pips from fresh yearly highs at 126.77 level in the last hour, mainly on news that the Japanese Prime Minister Shinzo Abe is expected to step down from his position due to deteriorating medical conditions.

Key Levels
Resistance Levels: 137.49, 128.67, 126.78
Support Levels: 124.43, 123.37, 121.96
EURJPY Long term Trend: Bullish
Within this session, bulls are likely to persist to press the exchange rate higher. The possible target for bullish traders will be close to Level 127.00. Even so, during the following trading session, the currency exchange rate is poised to make a minor retracement toward the ascending trendline support around 125.00 marks.

The continuous breach higher opens the path for a level of 137.49 (high). For now, this may remain the preferred scenario as long as the horizontal support line (now at level 123.37) retains. Even so, a prolonged breach of the ascending trendline support may rekindle medium-term bearishness at a later stage for another low beneath 114.42 marks.
EURJPY Short term Trend: Ranging
At this point, the intraday bias in EURJPY stands firm. As long as there is a support level of 124.43, more rally is in support of it. On the upside, a 126.78 level breach may restart rallying from level 114.42.

Regarding the state of bearish divergence in daily RSI however, a firm breach of 124.43 level may validate short-term topping. The intraday bias is switched to the downside for the horizontal support line (now at level 123.47), to correct the rally from level 114.42.

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