• EURJPY reversed from strong resistance level 126.80
• Likely to fall to 125.65

EURJPY recently reversed down from the strong multi-month resistance level 126.80 (which has been repeatedly reversing this currency pair from the start of August, as can be seen from the daily EURJPY chart below). The resistance area near the resistance level 126.80 was strengthened by the upper daily Bollinger Band. The downward reversal from the resistance level 126.80 stopped the previous minor impulse wave (iii).

Given the strength of the resistance level 126.80, bearish divergence on the daily RSI indicator and the sentiment reversal toward more safe assets – one of these being the Yen – EURJPY is likely to correct down further toward the next support level 125.65 (low of the previous minor corrective weave (ii)).