EURJPY is approaching our first resistance at 131.36 (horizontal swing high resistance, 50%, 76.4% Fibonacci retracement, 100% Fibonacci extension) and a strong reaction might occur below this level pushing price down to our major support at 127.59 (horizontal swing low support, 61.8% Fibonacci extension, 78.6% Fibonacci retracement). Stochastic (55,5,3) is also approaching our resistance and a reaction below this level might see a corresponding drop in price. Trading CFDs on margin carries high risk. Losses can exceed the initial investment so please ensure you fully understand the risks.