FXStreet (Mumbai) – The cross in the EUR/JPY keeps pushing lower in early Asia, after plummeting sharply in opening trades, as the latest hawkish comments from Fed Chair Yellen boosted the USD bulls.
EUR/JPY rejected at 134.90
Currently, the EUR/JPY pair trades -0.34% lower at 134.43, recovering from a dip to 134.27 session lows. The EUR/JPY cross trims losses as the yen extended weakness versus the US dollar after the Japanese inflation figures disappointed markets, while raising further BOJ easing bets.
Earlier this session, EUR/JPY with a negative gap of nearly 70 pips as Asian traders reacted to the latest Fed Yellen’s comments, citing that Fed is on track to raise this year.
Yellen’s comments sparked a rally in the USD, thus heavily weighing on the both the shared currency as well the Japanese yen.
Looking ahead, markets now await fresh incentives from the much awaited US GDP revision due later in the NY session as the European session offers nothing relevant in terms of economic releases.
EUR/JPY Technical Levels
To the upside, the next resistance is located at 134.56 (Today’s High) levels and above which it could extend gains to 135 (Sept 22 High) levels. To the downside immediate support might be located at 134.27 (Today’s Low) below that at 133.97 (Sept 24 Low) levels.
(Market News Provided by FXstreet)