EUR/JPY Ends a 6-Day Rally, Near 127.60

EUR/JPY Ends a 6-Day Rally, Near 127.60

1 April 2016, 07:52
Roberto Jacobs

EUR/JPY Ends a 6-Day Rally, Near 127.60

The cross took a breather from its six-day rally and eased in the Asian on Friday, mainly driven by a strengthening yen across the board amid risk-off market profile.

EUR/JPY off lows, regains 127.50 and beyond

The EUR/JPY pair trades -0.36% lower at 127.64, retreating from fresh session lows posted at 127.44 post-China open. The EUR/JPY cross failed to sustain gains at seven-week tops and dropped sharply this Friday as the sliding Asian indices triggered risk-off sentiment across the financial markets, and refuelled the safe-haven demand for the yen. While the local bearish Tankan manufacturing report also failed to hurt the JPY bulls.

While the price action around the EUR/USD pair remained largely subdued and had little impact on the cross. Looking ahead, final manufacturing PMIs from Eurozone will be eyed for further cues on the EUR, while the US jobs report due later in the NY session is expected to hog the limelight today.

EUR/JPY Levels to consider   

The pair has an immediate resistance at 127.26/30 (daily S1/ Mar 11 High) and from there to 128.60 (100-DMA). On the flip side, support is seen at 127.29 (1h 100-SMA) below which it could extend losses to towards 126.81/62 (10-DMA & 50-DMA).

(Market News Provided by FXstreet)

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