FXStreet (Mumbai) – The cross in the EUR/JPY faces double whammy and is heavily sold-off on Thursday, now miring near fresh four-day lows ahead of 135 handle.
EUR/JPY sinks on yen strength
Currently, the EUR/JPY pair plunges -0.97% to fresh four day lows of 135.03, giving away almost 160 pips so far. The EUR/JPY cross failed to break through the strong hurdle located near 136.70 and accelerated losses thereon and looks to test Friday’s low struck at 135.01.
The cross receives double blow from both counters – the euro weakness and the yen strength. However, it’s the yen strong upsurge versus the greenback in last hours (wavering near 118.20) that has led to the sudden sell-off in EUR/JPY. While the EUR/USD steadies around 1.1440 heading into the US inflation report.
Markets are expecting a 0.2% drop in the all items CPI in September while core CPI is expected to remain at 1.0% m/m in September.
EUR/JPY Technical Levels
To the downside, the cross finds immediate support at 134.75 (hourly S3) below that 134.46 (200-DMA), could act as a major support. While, to the upside, the next resistance lies at 50-DMA located at 135.57, above which it could extend gains to 135.98 (100-DMA) levels.
(Market News Provided by FXstreet)