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EUR/JPY rejected at 135.90, drops below 100-DMA

FXStreet (Mumbai) - The cross in the EUR/JPY stalled its recovery mode near 10-DMA and retreated thereon, with the bulls now consolidating below the 100-DMA.

EUR/JPY drops below hourly 200-SMA/100-DMA

Currently, the EUR/JPY pair gains 0.28% to 135.74, easing-off session highs posted at 135.91 in last hours. The recent spike in EUR/JPY was short-lived and the cross turned lower, having faced rejection just shy of 136 handle.

In last hours, the cross rallied nearly 60-pips after the shared currency jumped against its American counterpart, tracking the negative sentiment on the European stocks.

While the upside in the cross remains limited as the USD/JPY pair trades directionless within a tight range ahead of the US housing data and a slew of Fed speaks.

EUR/JPY Technical Levels

To the downside, the cross finds immediate support at 135.27/34 (Today’s Low & 20, 50-DMA) below that 135.02/135 (Oct 19 Low & round number), could act as a major support. While, to the upside, the next resistance lies at 135.91/96 (Today’s High & 10-DMA), above which it could extend gains to 136.50 (psychological levels).

USD/JPY upside appears limited at 120.00 – OCBC

According to Emmanuel Ng, FX Strategist at OCBC Bank, the pair’s upside might struggle to overcome 120.00 in the near term.Key Quotes“USD dynamics may continue to guide the USD-JPY in the near term despite the BOJ leaving unchanged its fairly sanguine outlook across the domestic regions”. “Look to the scheduled appearance by the Fed’s Yellen (1500 GMT) for immediate cues. In the interim, 120.00 may cap initial moves higher with support seen towards 118.90”.
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EUR/JPY points to consolidation near-term – Commerzbank

In the view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the cross is likely to remain rangebound in the short term...
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