EUR/JPY Erodes Over 2 Big Figures on JP Sales-Tax Decision

EUR/JPY Erodes Over 2 Big Figures on JP Sales-Tax Decision

1 June 2016, 08:17
Roberto Jacobs
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EUR/JPY Erodes Over 2 Big Figures on JP Sales-Tax Decision

The European currency was heavily battered by its Japanese rival in the late-Asian/ early European trades, knocking-off EUR/JPY to fresh three-week lows.

EUR/JPY: 122 handle tested

The EUR/JPY pair sinks -0.81% to 122.25, recovering slightly from fresh three-week troughs struck at 122 levels. The EUR/JPY cross remains heavily sold-off as the yen demand returned to markets after Japanese PM Abe’s sales tax hike delay decision came as a no big surprise, with the traders having already discounted the news.

While the selling also accentuated as the EUR/USD pair remains weak and extends its downside consolidation just ahead of 1.11 handle. The cross now awaits fresh impetus from the Eurozone manufacturing PMI reports due later this session ahead of a set of US manufacturing data.

EUR/JPY Levels to consider  

The pair has an immediate resistance at 123 (round number/ 5-DMA) and from there to 123.59 (50-DMA). On the flip side, support is seen at 122 (Session Low/ round number) below which it could extend losses to towards 121.45 (Multi-year low).


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