EUR/JPY drops 200 pips amid a stronger yen

By FXStreet The yen rose across the board as stocks in the US trimmed gains and also as USD/JPY broke below 114.20/30, to fresh 1-year lows.

EUR/JPY opened the day testing levels on top of 130.00 and then started to decline. During the Asian session it found support above 129.00 but then, after Yellen’s testimony it weakened and broke lower.

It continued to decline during the last hours and recently bottomed at 127.77, the lowest level in two weeks. Currently it trades at 128.10/20, 175 pips below yesterday’s closing price. The euro remains under pressure against the yen as USD/JPY trades back below 114.00.

EUR/JPY technical levels

To the upside, resistance levels could be located at 128.70 (Feb 08 low) 129.00 and 129.20 (20-hour moving average). On the opposite direction, support level might be located at 127.75 (daily low), 127.25/30 (Jan 11 low) and 126.75/80 (Jan 07 low).

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Source:: FX Street