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EUR/JPY testing highs near 128.30 on ZEW

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 19, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Mumbai) - The EUR/JPY cross extends its recovery mode into a second-day today and remains at higher levels above 128 handle following the release of mixed economic news from the Eurozone.

    EUR/JPY supported at 10-DMA

    Currently, the EUR/JPY pair trades 0.27% higher at 128.26, testing fresh session highs posted at 128.30 in last hours. The cross in the EUR/JPY remains strongly bid this session and now receives fresh impetus from the ongoing weakness in the yen against the greenback, with USD/JPY retesting 118 handle.

    While on the EUR side, the common currency keeps losing ground versus its American counterpart, as the upbeat German ZEW survey failed to lift the sentiment, which was dented by muted EMU CPI data.

    Calendar-wise, the euro zone's CPI ticked higher to 0.0% m/m in December, from -0.1% previously, whilst the yearly print came out unchanged at 0.2%. While Germany's ZEW Survey for the current situation unexpectedly improved from 55.0 to 59.7 in January and the headline economic sentiment figures deteriorated to 10.2 from 16.1 previously, although beat expectations of a 8.0 reading in Jan.

    EUR/JPY Technical Levels

    To the upside, the next resistance lies at 129/129.03 (round number & Jan 8 high), above which it could extend gains to 129.50 (Jan 5 High/ psychological levels). To the downside, the cross finds immediate support at 127.74/68 (daily pivot/ Jan 14 Low), below that 127.45/40 (daily S1/ Jan 12 Low), could act as a major support.
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