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EUR/JPY deflates from 131.00, Draghi eyed

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 4, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    After a brief test to the 131.00 neighbourhood, EUR/JPY lost some upside momentum and has now eased to the 130.80/75 band.

    EUR/JPY down from 132.30

    The cross keeps correcting lower following post-BoJ highs around 132.30 posted last Friday. Yesterday’s increasing buying interest around the Japanese currency has been weighing on the cross and it has offset the strong upside momentum around the euro, leaving the cross meandering below the 131.00 mark.

    Ahead in the session, ECB’s M.Draghi and Y.Mersch will be in the limelight, while the release of the Coincident Index and the Leading Economic Index will take centre stage in the Japanese docket early on Friday.

    EUR/JPY levels to consider

    As of writing the cross is losing 0.05% at 130.71 facing the next support at 130.00 (psychological level) followed by 128.99 (20-day sma) and then 126.12 (low Jan.21). On the other hand, a breakout of 132.30 (post-BoJ high Jan.29) would expose 134.29 (200-day sma) and finally 134.62 (high Dec.4).

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