Forex: EUR/JPY posts weekly low at 200 MA support

FXstreet.com (Barcelona) - EURJPY has steadily declined throughout the European session to post a weekly low and find support at the hourly 200 MA.

The pair, down from the 107.13 high at the start of the week, has posted a weekly low at 105.38, just below the 200 MA at 105.40 where spot is finding a touch of support. Should spot continue its move lower past the 200 MA, classic S3 support can be found at 105.09, ahead of the 38.2% Fibonacci retracement at 104.50 from the move higher from the monthly low at 100.32. Spot is currently trading at 105.45, down 0.80% on the days trading.

Calendar wise, US MBA Mortgages came in at -0.9/-2.2% previous whilst German CPI figures came in generally in line with expectations at 1.9% YoY Nov, -0.1% MoM Nov, -0.1% Harmonised MoM Nov and 2.0%/1.9% Harmonised YoY Nov.

Bijoy Kar of MIG Bank nots that the pair is showing signs of weakness after its sharp rise from 100.33. He notes that it is challenging its long term down trend, linking the October 2009 top and April 2011 top. A break higher could open the door to a test of key resistance at 111.60, a 21.10.2011 high. Elsewhere, European stocks are down alongside US futures and the vast majority of commodities.