As forecast, the EUR/JPY currency exchange rate reached the support of the 127.50 mark and the weekly S1 simple pivot point at 127.53. The 127.50 provided enough support for the pair to recover and break the channel down pattern. The recovery eventually ended at the weekly simple pivot point at 128.56, which caused a decline.
On Tuesday morning, the currency pair had declined below the 128.00 level. Meanwhile, it appeared that the 50-hour simple moving average had begun to serve as resistance.
In the case that the pair continues to decline, it could once again look for support in the 127.50 mark. If the 127.50 manages to provide support and cause another recovery, the EUR/JPY might first test the resistance of the 50-hour SMA, before aiming at the weekly simple pivot point at 128.56. Meanwhile, note that above the 128.56 level, the next resistance was the 200-hour SMA at 128.96.
On the other hand, a passing below the 127.50 mark might result in a further decline. A potential decline could find support in the 127.00 mark. Below the 127.00 level, the weekly S2 simple pivot point at 126.76 might act as support.
