FX.co ★ EUR/JPY: double top

The EUR/JPY pair is trading at 154.58 at the time of writing far below today's high of 155.38. The price action signaled exhausted buyers and announced a potential corrective phase. The Japanese Yen could take the lead as the Yen Futures rebounded in the short term.

Fundamentally, the JPY received a helping hand from the Japanese Revised Industrial Production which reported a 0.7% growth versus the 0.4% drop estimated and and after the 0.4% drop in the previous reporting period. On the other hand, the German PPI registered a 1.4% drop compared to the 0.7% drop forecasted, while the Eurozone Current Account came in at 4B versus 27.3B estimated.

EUR/JPY 153.36 As Target!

As you can see on the H1 chart, the currency pair dropped below the uptrend line and below the former low of 154.64, developing a Double Top reversal pattern.

Its failure to make a new higher high or to stay above the uptrend line confirmed exhausted buyers.

EUR/JPY Outlook!

The current breakdown below 154.64 was seen as a selling signal. The first major downside target is represented by the weekly pivot point (153.36).