The EURJPY pair has seen a decline and test of the descending channel lows, which coincide with the 50% corrective retrace level, as seen on the attached D1 chart.
EUR/JPY weekly analysis Click image to enlarge
Friday has seen an inside day candle form, with a marginally higher close, after two consecutive daily basis moves to the downside.
Guest post by Nick Simpson of www.forex-fx-4x.com
Any further corrective move lower would have us monitoring the 61.8% Fibonacci retrace area around 121.20; this also forms part of the technical zone between 120.64 and 121.20, as the previous resistance area is roughly aligned.
Any extended move lower has the 120.00 EURJPY round number area as a potential focus.
A resumption of the prevailing trend would need to break through the trend line areas as per the D1 chart. We also note that the broken ascending trend line and channel resistance line are loosely aligned with the 125.00 handle.