EUR/JPY - Downside break of the trading range confirmed

• EUR/JPY closed below 135.00 on Friday.
• Doors open for drop to 134.00?

The EUR/JPY pair closed below 135.00 levels on Friday, marking a downside break of the 100-pip trading range.

The cross has repeatedly failed to close above 136.00 levels since Jan. 15. Meanwhile, the downside was capped at 135.00 levels until bears finally pierced the psychological support on Friday.

So, as per the measured height method, the EUR/JPY cross could slide to 134.00 levels. Also, Kuroda's upbeat comments on growth and inflation at Davos could be read by markets as an indication that the Bank of Japan (BOJ) is getting close to QE taper.

EUR/JPY Technical Levels

As of writing, the currency pair is trading at 134.98 levels. A break below Friday's low of 134.54 would expose 134.07 (50-day MA) and 134.00 (psychological level + range breakdown target). On the higher side, breach of resistance at 135.50 (10-day MA) would expose 136.00 (psychological level) and 136.31 (Jan. 18 high).