EUR/JPY Technical Analysis: Head-and-shoulders breakdown, bad news for risk assets

• The EUR/JPY daily chart shows head-and-shoulders bearish reversal.
• EUR/JPY, a global risk barometer, looks bearish on the charts, is bad news for the risk assets.

Daily chart

Spot rate: 128.30

Daily change: +0.18 percent

Daily high: 128.52

Daily low: 127.93

Trend: Bearish

Resistance

128.62 (50-hour MA)

129.35 (H&S neckline support turned resistance + March 5 low)

130.00 (psychological support)

Support

128.22 (March 2016 high)

126.16 (January 2016 low)

125.00 (100-week MA)

The EUR/JPY pair widely considered as a global risk barometer. Thus, a head-and-shoulders breakdown could be an indication of tough times ahead of the risky assets. The bearish setup has opened the doors to 121.20 (target as per the measured height method).