FX.co ★ EUR/JPY deeper drop expected

EUR/JPY downside reversal

The EUR/JPY pair crashed today. It was trading at 146.38 at the time of writing. Dropping below the uptrend line signaled that the uptrend ended and that the sellers could drive it towards new lows.

The former low of 146.47 represented a downside obstacle as well. Now, the price tries to ignore this downside obstacle and resume its downside movement.

EUR/JPY trading conclusion

If the price stabilizes below the former low of 146.47, it may activate a further drop and provide a new selling opportunity.