EUR/JPY falls below weekly PP

Despite the multiple attempts to resume the surge, the EUR/JPY did not have enough strength to bypass a resistance level established by a combination of the 200-hour SMA and the weekly PP at 129.34. Partially, this failure is attributed to the pressure continuously exercised by the 55- and 100-hour SMAs. A sharp fall of the rate in the middle of day does not leave a hope for a possible breakthrough to the monthly R1 at 130.71. Accordingly, there are two likely scenarios. In first, the currency pair might rebound from the weekly S1 at 128.56 and end in this in a limbo between this and the above weekly PP levels. In second, the rate might slip to through the above support line and end the week near the 2016 high level at 128.18.