The EUR/JPY pair dropped as low as 140.35 today, where it has found support. Then, it rebounded and reached the 141.22 level. It increased by 0.62% in the second part of the day, but the bias remains bearish in the short term.
The currency pair could drop deeper anytime if the Yen futures jump higher. It could only test and retest the immediate resistance levels before turning to the downside again. The Euro dragged the rate higher even if the Spanish Flash CPI surged only by 5.8% versus the 6.1% growth expected.
EUR/JPY minor throwback
EUR/JPY found support on the 61.8% (140.38) retracement level, and now it has bounced back. It continues to challenge the 50% (140.86) obstacle after registering only false breakouts.
The former high of 141.22 and 38.2% (141.35) are seen as upside obstacles. On the other hand, today's low of 140.35 stands as static support.
EUR/JPY forecast
Staying below the 141.22 high and making a new lower low, a bearish closure below today's low of 140.35 may announce a deeper drop and is seen as a new selling opportunity.
