The EUR/JPY has reached the down-sloping trend-line from the April highs. This is expected to provide considerable resistance at about the 97.75 level. I don’t see the bears really getting the upper-hand however unless the pair falls below the key 76.4% Fib level at 95.59, which may lead to a rapid move to 94.20. The bigger picture still looks bearish with the recent correction off the all July lows – precisely that – a correction. The major down-trend probably will resume afterwards. Nevertheless a break above the 50-day MA at 98.10 would give the bulls confidence to try to bid up to 99.41.

Analysis prepared by:

Joaquin Monfort
Forex4you analyst