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The Euro dived sharply against the Japanese yen recently, as the Euro sellers gained strength against most major currencies in the near term. The EURJPY pair tested the 133.40 support area where the Euro buyers just managed to hold the downside. Earlier today, the Capital Spending was released by the Ministry of Finance Japan. The outcome was not on the negative side, as it registered an increase of 2.8% whereas the market was expecting it to stay above the 4%. So, this has caused a minor downside reaction in the Japanese yen, and in turn helped the EURJPY pair in the near term.
There is a bearish trend line formed on the hourly chart of the EURJPY pair, which might play an important role if the pair moves higher from the current levels. The EURJPY pair after falling towards the 133.40 level found support and managed to correct higher. It failed around the 38.2% fib retracement level of the last drop from the 135.35 high to 133.43 low. There is still a chance of a move higher towards the highlighted trend line where the Euro sellers might appear again. The 100 and 200 hourly moving averages are also sitting on the way up for the pair, which could act as a pivot area for the pair in the short term.
On the downside, the last low of 133.42 might continue to act as a support. A break below the same could ignite a run towards the 133.00 support area.
Overall, one might consider selling rallies around the 100 MA as long as it is trading below the stated trend line.