FXStreet (Córdoba) – EUR/JPY recovered some lost ground during the last hours but is still headed toward the lowest daily close since April.
The pair bottomed during the European session at 129.76 amid a decline of the euro across the board. Afterward a weak Yen limited the decline and EUR/JPY rose back above 130.00.
The recovery found resistance below 130.50 and currently is trading at 130.20/25, marginally below yesterday’s closing price, headed toward the fourth decline in a row.
EUR/JPY: Levels to watch
To the downside, the area around 130.00 remains important: a consolidation or a close significantly below could open the doors for more declines. The short term trend continues to point to the downside.
But if the euro manages to hold above 130.00 it could build momentum for a recovery. To the upside, above 130.50 the key resistance could be the area between 131.50 (several recent daily lows) and 131.80 (20-day MA): a break higher could boost the pair sharply to the upside.
(Market News Provided by FXstreet)