EUR/JPY drops to test September lows

EUR/JPY is falling for the second day in a row, amid a weak Euro across the board. The pair reversed during the European session and is looking at September lows.

Pressure remains in place

During the Asian session the pair rose from 112.50 to 113.57, boosted by risk appetite, following the US presidential debate. Then it failed to hold above 113.00 and turned to the downside. EUR/JPY bottomed at 112.24, the lowest level since Thursday. During the last hours it has been consolidating around 112.50.

The decline stopped above the September low located at 112.07. The bearish pressure could intensified if the price falls under 112.00. The next strong support area could be seen at 110.80 (July lows).

To the upside, the immediate resistance is seen at 113.50/70, that capped the upside during the last three trading days. Above here, attention could turn to 114.40/50, where the 20-day moving average stands; a consolidation above should give momentum to the euro.