EUR/JPY taking a rest bite of the downside

FXStreet (Guatemala) - EUR/JPY is currently trading at 127.58 with a high of 128.78 and a low of 129.25.

EUR/JPY has become tired on the bid and is tailing off in to the closing hours of this week's session while USD/JPY fails to break up on the 120 handle and drifts back t the 120.20's and EUR/USD succumbs to the greenback as the bears test the 1.06 handle and the bulls commitments. The cross is consolidated post the recent downward trend when the pair lost the 131 handle on heavy supply and a long squeeze that triggered stops through the supporting levels.

Technically, the 126.91 March low stands out on a continuation of the downtrend and this would be regarded as the break down point to the June 2013 low at 124.24 en route to the 122.64/121.95 200 week moving average and 50% retracement, as noted by Karen Jones, chief analyst at Commerzbank. "A currently unexpected rise and daily chart close above the 132.00 February high would increase the risk of a break above the 55 day moving average at 132.32 en route to the 134.77 2015 downtrend."