EUR/JPY offered at 118.00 post Japan earthquake

The bid tone around Yen strengthened in Asia, pushing EUR/JPY lower to 117.50 levels after a 7.4 magnitude earthquake off north-eastern Japan near Fukushima prefecture prompted a tsunami warning of possible 3m (10ft) waves.

Double top pattern on the 1-hour chart

The retreat from the 118.00 levels seen in early Asia has put in place a double top formation on the 1-hour chart. The neckline support is seen at 117.48.

The risk-off tone post Earthquake news saw the cross dip to a low of 117.52 for a brief moment. However, the Yen rally has stalled on reports that there is no immediate risk of a Tsunami, although aftershocks could be felt. The pair was last seen trading around 117.67 levels.

EUR/JPY Technical Levels

A break below immediate support at 117.48 (double top neckline) would open doors for a test of 117.00 (zero figure), under which the hourly 200-MA level of 116.64 could come into play. On the higher side, a break of the psychological level of 118.00 could yield a rise to 118.47 (July high), above which the pair could target 119.00 (zero figure).