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EUR/JPY in red, testing 136.50

FXStreet (Edinburgh) - The renewed tone around the Japanese yen is dragging EUR/JPY to test session lows in the mid-136.00s despite the buying bias in EUR.

EUR/JPY down from 135.70

After clinching fresh highs near 137.50 in the wake of the FOMC no-hike decision, the cross has sparked the current leg lower to the 136.50 area against a backdrop of a solid demand for the safe haven JPY.

Data wise, the BoJ minutes have shown renewed concerns over the economic prospects for China and the rest of the emerging markets, seen as a potential threat for the domestic growth.

EUR/JPY important levels

As of writing the cross is down 0.57% at 136.46 and a breakout of 137.44 (high Sep.17) would expose 137.59 (high Aug.26) and then 138.50 (high Aug.25). On the flip side, the immediate support lines up at 134.88 (low Sep.10) followed by 134.25 (low Sep.9) and finally 133.25 (low Sep.8).

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