The EUR/JPY pair turned to the downside after failing to stabilize above the 145.00 psychological level. Now, it was trading at 143.35 at the time of writing above today's low of 143.02. After its strong drop, the rate tries to recover, but the bearish pressure remains high.
Fundamentally, the Japanese economic data came in worse than expected today. The Retail Sales indicator rose by 4.3% less versus the 5.0% expected and compared to the 4.8% growth in the previous reporting period, while Unemployment Rate remained at 2.6% even if the traders expected a potential drop to 2.5%. On the other hand, the German Prelim CPI and the Spanish Flash CPI came in worse than expected.
EUR/JPY Downside Continuation?
From a technical point of view, the EUR/JPY pair dropped as much as 143.02 today after failing to make a new higher high. It has found temporary support at 143.04 and now it tries to come back higher.
143.72 and the descending pitchfork's upper median line (UML) represent upside obstacles. Staying below these levels could announce a new sell-off.
EUR/JPY Outlook!
Staying below the upper median line and below 143.72, registering only false breakouts above these levels or failing to reach them, followed by a new lower low activates more declines.
