EUR/JPY drops to test yesterday’s lows

EUR/JPY is falling on Tuesday for the fourth time in a row after weakening during the last hours amid a decline of the EUR/USD pair.

During most of the day EUR/JPY moved sideways after being unable to break above 114.00. After the beginning of the American session it lost strength. Recently it bottomed at 113.51 and it was trading around 113.60.

The pair remains with a negative tone and facing bearish pressure. On Wednesday volatility is likely to rise sharply, first during the Asian session with the decision of the Bank of Japan, and later with the Federal Reserve statement.

Technical levels to watch

To the downside, support levels could be seen at 113.45/50 (Sep 19 & 20 low), 113.15 (Aug 26 low) and 112.75/80 (Aug 24 low). On the opposite direction, resistance could be seen at 114.00.05 (daily high), 114.30 (Sep 19 high) and 114.85 (Sep 16 high).