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Forex pairs in this Article » USD/JPY (Athens) – The EUR/JPY was trading muted at 131.70 zone the last couple of hours, but amidst the past 30-minutes has been caught under pressure.

Will the EUR/JPY move towards its 200-DMA area at 129.16?

The EUR/JPY was trading almost unchanged the past European trading hours ahead of NFP data, but during the last half an hour is heading downwards at 131.60 area.The cross has been trapped during Friday’s trading session amidst immense volatility (partly due to the decline of the Nikkei index overnight, but mostly due to the downgrade of France). However, while the past hour was stuck at the 131.70 – 131.75 zone, it is now again under pressure as NFP time is looming. Briefly, the cross moved sidelines amidst a range bound of 131.50-131.77 during the Asian session, while in Europe was driven into a more volatile trend, since well after the announcement of the France downgrade, was dragged down abruptly to 131.27 level, losing rougly 28 pips.

Technical Aspects on the EUR/JPY

The EUR/JPY’s first crucial support area resides at the 131.44 (Ichimoku base cloud) - 131.50 (100-daily SMA), but if this area is decently breached, the pair could move further downwards near its 200-daily SMA (129.16). A lot of analysts suggest that in case NFP data releases in favor of the USD, the EUR/JPY could move towards the 200-daily SMA (129.16) area.
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