Nick Nasad
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EUR/JPY: Make Or Break Time For Retracement

The EUR/JPY, like most other JPY crosses sold off during the Friday/Monday sessions as markets digested the implication of the December US non-farm payroll report and equities in the US and Japan were weaker.

  • The pair fell out of its short-term sideways range, sliced through the 142 level, and slid as low as 140.50 before finding support.
  • The key question now is with the pair managed to retrace a good chunk of that initial fall, what's next?
  • Does the pair find resistance here near the 100-hourly EMA, which roughly coincides with the old level of support which may now turn to resistance?
  • Or, is the risk aversion wave that swept financial and currency markets over, and the pair managed to break back above the old support at 142, which would likely nullify the bearish mode.
  • My bias is to the downside at the moment, just because of the momentum the JPY's showed in price, but its really make or break time today, so it's likely best to wait and see what the reaction will be next.