FXStreet (Guatemala) – EUR/JPY has kept a strong bid tone through the 50 SMA on the hourly chart having taken out the 132.98 level earlier and is trading just shy of the minor recovery of last week from the major decline from where the 200 SMA prints today at 134.89 on the same time frame.
Tracking the equities around the globe, the US were out, but S&P futures maintained a positive tone and are currently 0.90% in the green. European indexes, opened with a positive tone that prevails, despite European poor data. German Industrial Production was up in July 0.7% versus expectations of a 1.0% advance and June figures were also revised to -0.9%.
EUR/JPY: eyes 129.28 fibo on downside
Closes in 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 year.” However, on the upside, and while the price remains above the 50 SMA on the hourly chart and a break on to the 134 handle brings in the 200 SMA and the September sideways channel that would relieve immediate downside pressures.
(Market News Provided by FXstreet)