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EUR/JPY: downside exposed below 200 SMA

FXStreet (Guatemala) - EUR/JPY is currently trading at 134.84 with a high of 135.00 and a low of 134.74.

EUR/JPY is suppressed by the 200 SMA on the hourly chart as Asia opens in the red, following suit of Wall Street last week and this exposes the downside in the cross, while the 135 handle caps the crosses recovery from the lows of below 133.60 scored at the end of last week's bearish run from above 136.80.

Key events this week for EUR/JPY

We are light on data from Asia and its has been a quiet start to the week so far. However, despite a number of second tier data release form Japan later in the week, there is plenty else that is going on. We start with the Fed's preferred inflation measure in PCE, then German and EZ CPI's and month end ahead of the end of week's showdown in the Nonfarm Payrolls keeping in mind October's FOMC.

EUR/JPY bearish bias

Technically, the price remains in recovery mode, but pressured and MACD is turning negative on the hourly chart as we progress through the shift on supply with USD/JPY bulls commitments are being tested at the 200 SMA at 120.22 today while Tokyo gets going.

Valeria Bednarik, chief analyst at FXStreet explained, " the 4 hours chart shows that the technical indicators have partially retraced from their highs, but remain well above their mid-lines, limiting chances of a bearish breakout as long as the 134.40 support contains the downside. A break below this last however, will signal an increasing bearish potential, with the price then most likely returning to its recent lows in the 133.00/30 price zone. "

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