I Expect An EUR/JPY Drop

EUR/JPY could not quite reach 133.50 and it stopped at 133.64, a level from which I expect the beginning of a correction.

For the moment the pair is range-bound within the zone around 132.80 – 133.00 which is a rather strong local support zone (best seen on the H1 time frame) and if there is a breakout below that zone we could expect a drop to 132.50 where is the next strong support zone.

If the pair breaks out below that too we could expect the depreciation to continue toward 132.00 and 131.50.

In the alternate scenario the pair will rally, but that scenario could develop only after a breakout above the strong resistance at 133.50.