• EURJPY reversed from resistance area
• Likely to reach support level 128.40
EURJPY currency pair recently reversed down from the resistance area located between the key resistance level 130.65 (which stopped the previous minor impulse wave (i) in the middle of March) and the upper daily Bollinger Band. The downward reversal from this resistance area stopped the previous minor upward impulse wave (iii) from the end of last month – which belongs to wave 3 from January.
Given the strength of the aforementioned resistance area, the bearish divergence on the daily Stochastic indicator and the steadily rising yen bullish sentiment seen today across the FX markets – EURJPY currency pair is likely to correct down further toward the next support level 128.40 (low of the previous minor correction (ii)).