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EUR/JPY hit fresh 9-month low

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 21, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The sharp drop in the EUR following Draghi’s dovish comments pushed the EUR/JPY pair lower to 126.39; it’s lowest since April 15, 2015.

    Rejected at 5-DMA

    The cross failed to sustain above the 5-DMA earlier today as the Asian stocks remained risk averse. But a sharp sell-off was seen in a last few minutes after Draghi left the doors wide open more easing in March.

    The dovish comments could keep the EUR under pressure. Meanwhile, the S&P 500 futures in the US indicate the index is likely to open in red. Hence, the JPY too is in demand on account of safe haven appeal.

    EUR/JPY Technical Levels

    The immediate support is seen at 126.09 (April 14, 2014 low), under which the cross could drop to 124.95 (June 2013 low). On the other hand, resistance is seen at 127.01 (Jan 6 low), above which the pair could revisit 127.88 (hourly 200-MA).
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