Forex: EUR/JPY still supported by trend line, 38.2% Fibo

FXstreet.com (San Francisco) - Persistent uncertainty and worries about Greece, Spain and the U.S. 'fiscal cliff' has enabled the safe-haven yen to appreciate against the Euro, with EURJPY again managing to probe support and test bids at a 38.2% Fibonacci level at 100.57 (94.10/104.57 upswing). Spot is also supported by a descending trend line drawn from the peak of Sep 17 to that of Oct 5.

The pair fell to fresh 5-week lows on Tuesday, extending as low as 100.30 before closing the North American session at 100.82 (vs. 101.00 late Monday), its fifth consecutive day of loses. "EURJPY remains firmly in a short-term down trend and needs to break back above 101.30 in order to ease the pressure," comments Sean Lee, Founder of FXWW.

If safe-haven bids continue to dominate and downward momentum for EURJPY persists in the global day ahead, below mentioned overnight low lies immediate support at 100.12 (Oct 11 low). A break below there could then open sky blue a bearish run until 99.33 (50% Fibo). The October 15 low at 101.00 offers short term resistance, and a push above there may find offers at 101.55 (55-day EMA).