EUR/JPY extends recovery to 132, lowest since May

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Oct 29, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The recent slump in the EUR/JPY cross found some support near daily S1, and now recovers almost half of the slide, in a bid to regain 132 barrier.

    EUR/JPY drops more than 150 pips post-FOMC

    Currently, the EUR/JPY pair loses -0.24% to 131.93, recovering from six-month lows struck at 131.60 in early Asia. The cross in the EUR/JPY remains pressured this session largely on the back of a solid comeback staged by the yen against the US dollar on the back of correction while better than expected local industrial figures also lifted the sentiment around the Japanese currency.

    Moreover, the minor rebound witnessed in the EUR/USD pair also supports the cross to pare losses and extend its recovery mode towards 132 handle and beyond.

    Meanwhile, the next market moving event for the cross is likely to be the BOJ decision due out tomorrow. However, the cross will also get influenced from the German CPI and US GDP data due later today.

    EUR/JPY Technical Levels

    To the upside, the next resistance lies at 132.40 (Today’s High), above which it could extend gains 132.98/133 (5-DMA/ round number). To the downside, the cross finds immediate support at 131.60/59 (Today’s Low/ daily S1), below that 131 (psychological levels), could act as a major support.
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