EUR/JPY tests 130.00, cheapest since April

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 25, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The cross in the EUR/JPY came under renewed downside pressure and dropped to the lowest levels since April this year, as bears took over complete control ahead of a series of US macro updates.

    EUR/JPY drops on broad EUR selling

    Currently, the EUR/JPY pair trades -0.29% lower near fresh seven-month lows struck at 130.01. The latest news on wires of ECB broadening its QE program coupled with ECB’s Constancio’s talking down on inflation outlook triggered fresh selling on the EUR, knocking down EUR/JPY for a test of 130 handle.

    However, the cross manages to hold above 130 levels as a weaker yen against the greenback cushions further downside in EUR/JPY. The USD bulls jumped back into the game ahead of a spate of US fundamentals lined up for release later in the US session.

    EUR/JPY Technical Levels

    To the upside, the next resistance lies at 130.56 (5-DMA), above which it could extend gains to 130.76 (Daily High). To the downside, the cross finds immediate support at 129.78 (daily S2), below that 129.50 (round number), could act as a major support.
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