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EUR/JPY hammered to 128.00, weakest since April 2015

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 5, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Mumbai) - EUR/JPY battering extends into the mid-European session, with the European currency heavily smashed by its Japanese counterpart amid deteriorating risk conditions across the FX board.

    EUR/JPY holding onto 129 barrier

    Currently, the EUR/JPY pair sinks -0.87% to 128.25, recovering slightly from fresh nine-month lows struck at 127.99 last hours. The EUR/JPY cross was relentlessly sold-off this session as the EUR/USD pair dropped sharply on the back of weak Euro zone inflation report. The Euro zone CPI data came in at 0.2% in Dec, the same seen in Nov, although came below a 0.4% rise expected by markets, while the Core CPI also matched the previous reading.

    While the strengthening yen against the USD on negative European equities-fuelled rising safe-haven demand, further adds to the bearish pressures on the cross. Looking ahead, the pair is expected to remain pressured unless markets witness a turnaround in risk conditions in the NY session ahead.

    EUR/JPY Technical Levels

    To the upside, the next resistance lies at 129 (round number), above which it could extend gains to 129.59/ 61 (daily pivot/ Nov 27 Low). To the downside, the cross finds immediate support at 128/ 127.99 (psychological levels/ daily low), below that 127.38 (daily S2/ April 2015 levels), could act as a major support.
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