EUR/JPY technical analysis: Bears target a break to 117.40
- Bears in control with expanding moving averages pressuring the downside.
- The 20-DMA is first key resistance but bears target a break of 118 handle.
EUR/JPY is trading in a bearish daily trend but is stalling at the 118 handle as risk appetite returns. EUR/JPY recently exceeded the prior 2019 lows pressured by expanding moving averages on the way down with the price a sell on rallies.
A break of 118 will open the next support to the downside at 117.40/19 which guards the 114.86 2017 low. On the upside, an initial resistance is the 20-day moving average in the 119.32 ahead of the 120.06 25th July low.