The EUR/JPY breaks the 140.00 level and keeps falling.

The Euro is still being affected by the weak European fundamentals and the fact that the Bundesbank, the German central bank, has mentioned that it will support the European Central Bank if they decide to lower their interest rates even lower. This has caused steep declines on the Euro versus the Dollar, but also versus the Yen.

On the 4 hour chart below we see that the EUR/JPY has kept its bearish momentum since it started falling from the 141.00 level. Even though we see that once the price reached the 140.00 during the first visit, it then pulled back to the 141.00, just to fall right back down to the 140.00. After a brief consolidation just above the 140.00 level, the pair breaks this zone to the downside and it stalls at the 139.50 level, half way to the 139.00.

We may probably see a pullback to the 140.00, which should act as a resistance now, and a possible bounce to the downside from there. But if the price does not retrace and continues falling, then a visit to the 139.00 level can cause the pair to bounce to the upside from there.