• EUR/JPY continues to move in ranges, with a bearish bias.
• Dominant trend points to the downside, more losses seen under 127.50.
• Gains below 129.00 should be seen as corrective.

The EUR/JPY is rising on falling on Tuesday, giving back Monday’s gains. The euro peaked near 128.50, and then pulled back. It was unable to remain above 128.00, showing that it continues to face pressure.

The main trend is bearish and EUR/JPY looks poised to test the lower bottom area. The key level to watch on the downside is 127.50. A daily close below should point to more losses, with an immediate target at 127.00, followed by 126.70.

Technical indicators are giving mixed signs, affected by the consolidation moves in a small range. RSI is turning south, but Momentum keeps a positive slope. Despite being unable to confirm levels above 128.00, so far the decline has been limited.

If the euro, breaks and posts a close above 128.00, it would gain momentum for a test of 128.50. A daily close above 130.00 should be a potential sign the euro has probable established an interim bottom.

EUR/JPY daily chart