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EURJPY : Might Extend its Losses

(EURJPY : Daily Chart)

EURJPY is currently testing the key support at 136.32 on the daily chart. There seems a falling resistance trend line which combined with the key support forms a descending triangle trend. EURJPY actually looking bearish right now. EUR today found support against Japanese Yen after the release of the upbeat euro zone PMI data. Also Safe haven are losing importance as the geopolitical tensions eased and the investors turned their attention towards the key data released by the big economies of the world. The 50 day SMA crossed the 200 day SMA to move down and 100 day SMA is also contracting towards the 200 day SMA and might cross below it confirming that the pair will continue to follow the downtrend breaking below the support at 136.32.

Fundamentally the bank of japan is pumping the economy by buying more assets than the ECB but the psychological effect from the new ECB measures and the reluctance of Bank of japan to ease further might pull the pair further down.