EUR/JPY Firmer, Hovers Around Hourly 200-SMA

EUR/JPY Firmer, Hovers Around Hourly 200-SMA

7 June 2016, 12:04
Roberto Jacobs
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EUR/JPY Firmer, Hovers Around Hourly 200-SMA

The EUR/JPY cross extends gains into a second straight session today, receiving double booster shot amid broad based US dollar weakness.

EUR/JPY eases-off highs

The EUR/JPY pair climbs +0.35% to 122.53, retreating slightly from fresh session highs reached last minutes. The EUR/JPY cross extends its bullish run into the European session, having caught fresh bid-wave after EUR/USD climbed further northwards, tracking resumption of the broad USD downslide.

While the bulls also found support from the ongoing recovery in the USD/JPY pair, as the safety bet yen continues to lose ground in wake of the European stocks rally and higher oil prices.

Meanwhile, the broader market sentiment and the USD price-action will continue to drive the cross, while the immediate focus now remains on the Eurozone GDP data due out shortly.

EUR/JPY Levels to consider  

The pair has an immediate resistance at 123/123.20 (round number/ 50-DMA) and from there to 124.12/25 (Daily R3/ May 31 High). On the flip side, support is seen at 121.64/62 (5-DMA/ 1h 50-SMA) below which it could extend losses to towards 120.75 (Multi-year low).


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