The EURJPY is back at the breakdown point, what happens from here is important.

The EURJPY has bounced back to the breakdown point near the 125.00 level which is a do or die level for the bulls. A failure here could result in a move to re-test the spike lows. A rally past resistance could mean a further squeeze higher towards the 128.00 level once again. In addition, traders who follow equity markets closely too will be watching this pair as the correlation between the SPX and the EURJPY is quite high. A break higher could result in a move in the SPX back above the 2600 level as well.

EURJPY Chart of the Day

Blake Morrow