The risk has turned lower for a retest of key support at 120.80/78
EURJPY weakness has extended after rejecting important resistance from its June high and 38.2% retracement of the fall from March at 123.35, as well as its 5-day average, removing support at 121.65 to warn of a move back to the lower end of the broader range. Support is seen initially at 121.29, then last Friday's low at 120.95, below which should clear the way for a retest of key support from the June low, 78.6% retracement of the Q1 2019 rally and the medium-term uptrend from 2016 at 120.80/78, where we would expect to see renewed buying. Below though would mark an important break lower, exposing the 118.80/85 low for the year.
Resistance moves to 121.84 initially, above which can see a move back to 122.54/54. Removal of here can see a fresh challenge on the 123.35/36 barrier