EURJPY drops below short-term support

EURJPY has been trading in an uptrend recently. However, it should be noted that the ongoing correction has pushed the pair below a key support zone in the 160.00 area (159.90-160.15). This area is marked with green color on the chart below, and it results from previous price reactions, lower limit of the local market geometry as well as the 100-period moving average (H4 interval). Should we see a more decisive and sustained break below this area, the sell-off on the pair may accelerate. In such a scenario, the key support zone to watch can be found in the 158.12 area, where the lower limit of a larger Overbalance structure can be found (green box). On the other hand, a return above 160.15 handle would invalidate this scenario and may hint at resumption of the upward move.

EURJPY at H4 interval. Source: xStation5