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EUR/JPY moving for retest of the 137.00

FXStreet (Barcelona) - EUR/JPY is trading at 136.82, up 0.31% on the day, having posted a daily high at 137.04 and low at 136.28.

EUR/JPY rallied up from 134.20 last week and met some limited supply that it has since managed to conquer for a retest of the 137.10 target and the height of the daily Oct 10th stick. However, the pair remains under pressure here overall and while below 138.00 it may find that the upside is limited. There are concerns fundamentally over the growth of the euro zone that is playing out. In that respect, what will be key is the ECB next week in respect of their bond-purchasing programme and chatter around the possible size of those purchases.

The 138.45 pivot would be the next challenge above that 138 psychological handle but any momentum south could well target the 133.51/23.6% retracement of the move up from 2012, as explained by Karen Jones, chief analyst at Commerzbank.

EUR/JPY noteworthy levels

With spot trading at 136.82, we can see next resistance ahead at 137.04 (Daily High), 137.11 (Daily 20 SMA), 137.29 (Daily Classic R2) and 137.38 (Weekly Classic R1). Support below can be found at 136.70 (Daily Open), 136.61 (Hourly 20 EMA), 136.40 (Weekly High) and 136.31 (Hourly 200 SMA).

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