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EUR/JPY: Recovery gathers pace, near 123.60

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 25, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    The shared currency managed to recover losses against its Japanese counterpart in the mid-European session, lifting EUR/JPY back around the mid-point of 123 handle.

    EUR/JPY recovering from almost 1 big figure drop

    The EUR/JPY pair trades modestly flat at 123.61, recovering a dip to fresh session lows reached at 123.43 last hours. The cross catches fresh breather of air after falling to session lows and finds support from the minor-recovery seen in the EUR/USD pair. While positive sentiment seen on the European equities provides fresh impetus top USD/JPY, which also aids the recovery in EUR/JPY.

    Meanwhile, EUR/USD bounced-off 1.1005 lows and now trades near 1.1020 levels, while USD/JPY also found fresh bids just below 112 handle and now rebounds to 112.25 region.

    The cross also benefited from a slightly upbeat Euro zone final CPI print, which underpinned the EUR. Later today, the US durable goods data due for release in the NY session will hog te limelight.

    EUR/JPY Levels to consider

    The pair has an immediate resistance at 124.07/10 (5-DMA/ 1h 100-SMA), above which 125.35/56 (10-DMA/ 1h 200-SMA) would be tested. On the flip side, support is seen at 123.31 (1h 50-SMA/ daily low) below which it could extend losses to towards 123 (April 2013 Levels).
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