EUR/JPY – Bears Attack Bids at 50-DMA
Common currency is losing ground in Europe on dovish comments from ECB’s policymaker, with EUR/JPY attempting to chew through bids around 50-DMA located at 126.78.
Rejected at 5-DMA
The cross was rejected at 5-DMA of 127.33 levels following which the selling pressure gathered pace and gained further traction after ECB’s Praet assured markets the bank would not shy away from more easing if the inflation continues to move away from the target.
The pair clocked a high of 128.22 levels last week before ending at 127.12 levels on Friday. EUR/JPY now trades around 126.85 levels; down 0.30% on the day.
EUR/JPY Technical Levels
Acceptance below 126.78 (50-DMA + 10-DMA) would open doors for a drop to 12.09 (rising trend line support), under which the cross may challenge bids around 124.67 (Mar 22 low). On the higher side, violation at 127.33 (5-DMA) would expose hurdle at 128.16 (Friday’s high) followed by 100-DMA of 128.73.
(Market News Provided by FXstreet)