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EUR/JPY took off from Asian lows ahead of event-packed day

FXStreet (Moscow) - EUR/JPY consolidating with modest upside bias early in Asia. The cross touched the current intraday low at 138.52 and drifted towards 138.75.

Bulls on retreat

EUR/JPY started the downside correction, just as it was expected. No wonder, as the cross was considered to be deeply overbought. EUR was under pressure, while JPY stopped its steep decline. These factors pushed the cross below 139.00 and cost it nearly 40 pips on Monday. EUR/JPY finish the first trading day of the week at 138.69 after opening at 139.06. From the fundamental point of view, keep your eyes peeled for German ZEW numbers published later during European hours today as they are expected to increase worries about the state of the largest EZ economy. In this case EUR is vulnerable to sell-off across the board. Now that the cross is below 139.00 pivot, the short-term downside might extend towards 138.24 (Friday’s low). The immediate upside might be limited by 138.74 (Asian high).

What are today’s key EUR/JPY levels?

Today's central pivot point can be found at 138.79, with support below at 138.39, 138.07 and 137.67, with resistance above at 139.10, 139.51, and 139.82. Hourly Moving Averages are bullish with the 200SMA bullish at 137.56 and the daily 20EMA bullish at 137.58. Hourly RSI is bearish at 48.

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