EUR/JPY trades south toward AB=CD measured target at 162.30
EUR/JPY corrects the recent rally. Recent dovish comments from ECB officials and intervention-supportive comments from Japanese officials support the downside direction.
There is room for more losses toward the support zone between 50% and 61.8% Fibo levels. The measured move target of the AB=CD pattern is 162.30, which overlaps the daily ATR range. I expect a downside price action in line with the previous week’s performance amid a low-volatility holiday. Resistances are at 163.80 and 164.25 – a rally toward those levels could be sold.
