Cross-rate Signals: EUR/JPY is preparing for correction

After a one-week decline, the cross-rate EUR/JPY remains largely in oversold zone, due to political risks in Italy. At the same time, the monthly downtrend in the pair accelerated, which is likely to be limited due to oversold.

Therefore, the return of EUR/JPY cross above the level of 127.70-90 will indicate the possibility of correction to resistance levels: 128.50 and 129.00, thereby returning the pair to a downtrend. Levels of support are: 127.50 and 127.00.

Also, read: “Indicator Momentum – an excellent assistant in trade”

Hanzenko Anton