EUR/JPY supply protects hourly 50 SMA

By FXStreet FXStreet (Guatemala) – EUR/JPY was headed higher still in Tokyo as a turnaround in risk displays across the board, with the stock markets rallying and the Yen in supply subsequently.

EUR/JPY has been better bid in Asia and has made a recovery from 132.33 lows of last week. The price was headed towards the 50 SMA on the hourly chart at 133.53 which continues to prove to be a tough resistance area having contained the cross on previous upside attempts within the descending channel from the 200 DMA resistance at 136.10. At the time of writing, S&P futures are up 0.68%, CSI 500 Index is up 3.58% and the Nikkei is 0.90%.

ECB weighs on EUR/JPY

Fundamentals weigh on the cross in respect to the dovish tone from the ECB last week who left the door open for additional QE towards the end of the year and cut their growth and inflation forecasts also. EUR/USD left the vicinity of the 1.12 handle as a result.

Technically, EUR/JPY’s recent activity below the 133 handle exposes 127.39 on the downside, according to Karen Jones at Commerzbank. “Initial support will be the 131.80 then 129.28 Fibonacci retracements of the move seen this …read more

Source:: FX Street