EUR/JPY Technical Analysis: Breaks below the key support line. Relevant contention emerges at 129.08

• EUR/JPY is losing the grip today, down for the second session in a row and following a sharp down move in the single currency.
• The cross breaks below the relevant support line off May’s lows, opening the door for another visit to last week’s lows in the 129.00 neighbourhood, coincident with the top of the daily cloud.
• As long as this area holds, another test of the key 200-day SMA at 131.78 remains on the cards. However, a sustainable breakdown of the 129.00 level could pave the way for a test of 126.63 - June’s lows – ahead of YTD low at 124.61 seen in May.

EUR/JPY daily chart

Daily high: 130.31

Daily low: 129.24

Support Levels

S1: 129.82

S2: 129.38

S3: 128.73

Resistance Levels

R1: 130.92

R2: 131.57

R3: 132.01