Attention Is On Key Support

• RES 4: 131.59 High Nov 5
• RES 3: 130.43 50.0% retracement of the Oct 20 - Dec 3 downleg.
• RES 2: 129.99 High Nov 19
• RES 1: 128.98/129.64 High Dec 17 / High Dec 16
• PRICE: 128.26 @ 06:40 GMT Dec 21
• SUP 1: 127.52 Low Dec 20
• SUP 2: 127.39 Low Dec 3 / 6 and the bear trigger
• SUP 3: 127.28 1.00 proj of the Jun 1 - Sep 22 - Oct 20 price swing
• SUP 4: 127.04/126.65 Low Feb 15 / Low Feb 10

EURJPY sold off sharply Friday, resulting in an extension from Thursday’s high of 129.64. The break lower has exposed key support at 127.39, the Dec 3 / 6 low. A break of this level would strengthen the bearish threat and confirm a resumption of the underlying downtrend. Note that the recent move lower has canceled an inverted head and shoulders pattern. Price needs to get above Friday’s intraday high of 128.98 to ease the bearish threat.