EUR/JPY stalls after eight day winning streak

By FXStreet FXStreet (Mumbai) – The EUR/JPY pair is taking a breather below a key Fibo level after enjoying an eight day winning streak that saw the pair jump from 126.16 to 132.50.

Trades below 23.6% Fibo

The cross sits below 131.67 (23.6% of Dec 2014 high-April 2015 low). A turn lower from the Asian session high of 131.86 also marked the failure to sustain above the monthly 5-DMA located at 131.74.

The immediate focus now is on the German labor market data, which will be followed by the Eurozone unemployment rate. Across the pond, the economic calendar is light. Meanwhile, the demand for the JPY may spike/drop according to the sentiment in the major European equity markets.

EUR/JPY Technical Levels

The pair is currently trading around 131.45, with immediate support at 130.81 (Jan 29 low), under which the losses could be extended to 130.62 (hourly 100-MA). On the other hand, a break above 131.58 (hourly 50-MA) could see the cross rise to 132.29 (100-DMA).
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Source:: FX Street