EURJPY tests major support


As sentiment worsened over the previous days, the Yen strengthened broadly and the EURJPY cross dropped 150 pips from this week's highs. On Thursday, it was down 0.3% during the London session, trading at around 115.50.

This seems to be significant support as previous lows are located here. If the price drops below 115.40/50, larger stop-losses could be hit and a quick decline toward the actual swing lows of 114.40 could occur. 

A breakout below 144.40 could open a large space for a medium-term decline toward the psychological level of 110.00.

Alternatively, if rally occurs from the mentioned support, the next target for bulls could be at 116.00, or potentially at this week's highs of 116.75.

Equities declined notably this week, which ain't positive signal for JPY crosses. The RSI indicator is in slightly oversold territory on shorter time-frames, but the two-hour chart has it right in the middle of its zone. 
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