EUR/JPY consolidating dangerously below 123.00

EUR/JPY attempted to recover on Friday but lost momentum and turned to the downside on a quiet session, breaking below 123.00 and also below yesterday’s low. Price bottomed at 122.63, reaching the lowest level in a week.

During the previous days EUR/JPY moved in ranges but toward the end of the week turned to the downside, and did not rose back (like it happed on Thursday) amid a stronger yen.

A test of 122.00 coming?

Price is consolidating below 123.00. Despite holding above 2016 lows, the pair is about to post a daily and a weekly close under the 123.00 handle. On the daily chart 123.00 offered resistance last week and also during March. A consolidation below could add pressure to the euro exposing 122.00, where 2016 lows are located.

For the euro is the second weekly decline in a row and implicates a confirmation of the losses of the previous week when it dropped from 127.20 to 123.20 and it gives signals that the downside pressure still persists.