Forex: EUR/JPY finds support at 100.25
Forex pairs in this Article »
EUR/JPY
FXstreet.com (San Francisco) - EURJPY (100.40) recently broke below trendline support around 100.70 (July 24/Aug 2 troughs) to reach new 8-day lows this Thursday.
Price has just fallen to as low as 100.25 and is now deciding whether to accelerate the decline below the 200 EMA (100.40) or to recover from potentially oversold conditions - the hourly RSI at 32 may be set for a bounce.
If EURJPY continues to weaken, the 50-day EMA offers support at 100.03. A break below there could leave open scope for a test of support at 99.20 (Aug 21 high). Short-term rallies may encounter resistance at 100.65 and 100.90 (Sep 20 low).
The catalyst for this recent dip can be attributed to EUR weakness as market participants react to S&P's announcement it had downgraded Spain after the closing bell in New York. BoJ Monetary Policy Meeting Minutes are on the economic docket today at 23:50 GMT, but the key risk event for the session will be the release of Australian September job figures.
Price has just fallen to as low as 100.25 and is now deciding whether to accelerate the decline below the 200 EMA (100.40) or to recover from potentially oversold conditions - the hourly RSI at 32 may be set for a bounce.
If EURJPY continues to weaken, the 50-day EMA offers support at 100.03. A break below there could leave open scope for a test of support at 99.20 (Aug 21 high). Short-term rallies may encounter resistance at 100.65 and 100.90 (Sep 20 low).
The catalyst for this recent dip can be attributed to EUR weakness as market participants react to S&P's announcement it had downgraded Spain after the closing bell in New York. BoJ Monetary Policy Meeting Minutes are on the economic docket today at 23:50 GMT, but the key risk event for the session will be the release of Australian September job figures.
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