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EUR/JPY may depend on Tokyo open

FXStreet (Barcelona) - EUR/JPY is trading at 137.35, up 0.01% on the day, having posted a daily high at 137.44 and low at 137.29.

EUR/JPY was an 80 pip play overnight, with two swings either way down to test the 137 handle and commitment from the bulls. 136.80 held strong and takes us back to where we currently stand. Trading was much immersed in the performances of equities again. Technically however, as Valeria Bednarik, chief analyst at FXStreet explained, the pair has extended well below the 61.8% retracement of the 135.81/141.22 rally around 137.90, keeping the longer term outlook still to the downside. “In the 4 hours chart indicators maintain a strong bearish momentum, with renewed selling pressure below 136.90 strong static support, supporting a downward continuation ahead of US NFP data”. She added that indeed Nikkei futures have been strongly down ahead of the opening, and the behaviour there, she said, will be key over Asian hours, as if the index manages to recover as its overseas partners, yen crosses will be favoured to the upside, towards 137.90 first, and near 138.50 once above it.

Support levels: 136.90 136.40 136.00

Resistance levels: 137.90 138.50 139.15

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