EURJPY testing April lows


The euro continues to decline against the yen and on Wednesday, the price dropped to last week's lows of 115.50 as the Japanese yen strengthened notably against the greenback. 

If this support is taken out, larger stop-losses could be hit, which might drag the EURJPY cross further lower, targeting the 115 threshold, where April 2017 lows are located. 

Alternatively, if the support holds, we could see a small rally targeting the short-term bearish trend line, which is near 115.85. However, if the euro managed to climb above this trend line, a more powerful relief rally could occur, which could bring the EURJPY cross back to 116.50.

Nevertheless, the medium-term trend remains bearish, and the Japanese yen is usually used as a safe haven currency, which strengthens during market turmoil. 

Volatility in the FX returned to normal, and we are now seeing minimal daily movements, which is typical for this market. Much more volatility is still in equities and commodities. 
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