EUR/JPY falls below weekly PP

In the end of the yesterday's trading session, the common European currency fell to the combined support level set up by the weekly PP at 129.34 and the 200-hour SMA. However, the rebound did not follow as smoothly as was projected. The currency pair made three attempts to jump to the 55- and 100-hour SMAs near the 129.98 level, but all of them failed. The final point was set this morning, when the Euro slipped by 83 basis points. Nevertheless, the weekly S1 at 128.56 stopped the further fall and forced the currency pair to a make a u-turn. Such outcome gives a hope that the rate will retreat to the above 55- and 100-hour SMAs. Yet, the new downtrend suggests that the end of the week the pair might face near the 2016 high level at 128.18.