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EUR/JPY: Eyes hourly 50-SMA to the downside

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 20, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Mumbai) - The EUR/JPY cross appears to reverse a part of previous gains and moves further away from 132 barrier in early Asia, mainly driven by broad EUR weakness.

    EUR/JPY drops below hourly 20-SMA

    Currently, the EUR/JPY pair trades -0.14% lower at fresh session lows of 131.69, now flirting with the 5-DMA support placed at 131.67. The offered tone on the EUR strengthened post-Tokyo open, sending EUR/JPY lower towards the mid-point of 131 handle.

    The shared currency halted its post-FOMC minutes correction and resumed the recent bearish momentum against the US dollar, thereby negatively impacting EUR/JPY.

    While the USD/JPY trades flat near 123 handle, offering little support to the bulls, with the cross now heading towards the hourly 50-SMA support located at 131.60.
    Later in the day, focus will remain on the ECB Chief Draghi’s speech as the countdown to the ECB Dec 3 meeting begins.

    EUR/JPY Technical Levels

    To the upside, the next resistance lies at 132 (round number), above which it could extend gains to 132.26 (Nov 16 & 19 High). To the downside, the cross finds immediate support at 131.61 (1h 50-SMA), below that 131.39 (Daily S1), could act as a major support.
    For more information, read our latest forex news.
     

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