EUR/JP keeps highs around 131.50

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 1, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Edinburgh) - The Japanese yen keeps depreciating vs. the single currency at the beginning of the week/month, sending EUR/JPY to the area of daily highs in the mid-131.00s.

    EUR/JPY attention to EMU data, BoJ

    The cross remains optimistic following a very positive performance during the second half of January, where the bid tone in EUR along with rising weakness in JPY have allowed a bounce off lows near 126.00 the figure.

    The BoJ has certainly collaborated with the upside after lowering its rate to the negative territory for the first time at its meeting last Friday.

    On the data front, the manufacturing PMI in Japan has come in on the soft side for the last month, while final manufacturing PMIs are expected in the euro zone later in the session.

    EUR/JPY levels to consider

    At the moment the cross is up 0.29% at 131.53 facing the next resistance at 132.33 (high Jan.29) followed by 134.31 (200-day sma) and finally 134.62 (high Dec.4). On the flip side, a breach of 130.67 (55-day sma) would open the door to 128.73 (20-day sma) and then 126.12 (low Jan.21).
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