Deeper Drop in EUR/JPY is Possible

Trading in the pair is on the downside, but downside should be contained by support from 38.2% retracement of 122.39 to 131.39 at 127.95. Pivot points are at: (S1) 128.01; (P) 128.78; (R1) 129.33.

A short term top was formed in the pair at 131.39 and correction from that point goes on. Overcoming of 127.95 will bring deeper fall to resistance 125.80.

The downtrend from 149.76 has concluded at 109.03. Another increase should align 61.8% retracement of 149.76 to 109.03 at 134.20. Firm breach in that spot will head towards the key long term resistance zone of 141.04/149.76.