The currency pair EUR / JPY forms a graceful swan dive after weeks of consolidation between 120.5 and 123.5. The weekly chart shows two resistances, but they are far from current levels.
First support is closer to 114.5, the second slightly lower around 113.5.
The pair has formed a downtrend since mid-2015, with the price ranging between two parallel lines on the diagonal support and resistance. An important feature is the fall in long-term historical support near 120.5. The fall is still no logical support of the graph until it reaches the upper trend line of the channel close to 114.5. It is possible to have dropped as fast as it was rising from November to December 2016.
Historical support near 113.5 is obsolete, but not necessarily strong since the middle of 2016 is punctured and the price fell to 109.5, before stabilizing around 113.5.
Traders should be aware of these declines and sudden overshoots. This is a good area for trading.
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