EUR/JPY drops below 23.6% Fibo support

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 7, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    The EUR/JPY pair extended losses in Europe to trade below 124.47 (23.6% of 132.29-122.06) after BOJ’s Kuroda squashed hopes of more monetary easing in the near-term.

    Offered below hourly 50-MA

    The selling pressure gathered pace after the cross dipped below the hourly 50-MA located at 124.73. The greenback is on a recovery mode against most majors, due to which the EUR/USD pair fell below its 50-DMA.

    However, Kuroda saved the day for Yen by stating the bank is unlikely to do more right now. Consequently, the cross fell to a low of 124.28 levels and appears on track to test the hourly 100-MA support at 124.18.

    EUR/JPY Technical Levels

    The immediate support is seen at 124.18 (hourly 100-MA), under which the pair could test hourly 200-MA level of 123.92. A break lower would expose 123.09 (March 2 low). On the other hand, a break above 124.47 (23.6% of 132.29-122.06) would shift risk in favor of a recovery to 125.24 (daily high). Above the same the cross could rise to 125.59 (Friday’s high).
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