EUR/JPY: Will 127.70 support hold? – Natixis

Micaella Feldstein, analyst at Natixis, suggests that with daily indicators having turned bearish and daily volatility having picked up for EUR/JPY cross, points towards a sharp deterioration of the technical configuration in the daily chart, more particularly the development of a downward bubble.

Key Quotes

“Under these conditions, any rebounds are likely to be limited. Keep an eye rather on the support at 127.70 (lower band of daily Bollinger).”

“A break below this last level would release significant downside potential towards 126.61-126.82 (Fibonacci projections) and, especially, the support at 126 (lower band of weekly Bollinger).”