EUR/JPY recovers from 1-month lows

FXStreet (Mumbai) - EUR/JPY retreated from fresh monthly lows reached after downbeat German factory orders data and remains under pressure largely on the back of a sliding euro against the US dollar ahead of ECB meeting.

EUR/JPY supported above 132 levels

Currently, the EUR/JPY cross fell -0.18% at 132.35 levels, recovering from fresh four week lows hit at 132.15 levels post data. The cross in EUR/JPY dropped sharply largely on the back of a tumbling euro across board after traders remained wary on details about the QE at today's press conference. Moreover, weaker than expected German factory orders data also added to the losses in EUR/JPY.

However, the downside in the cross remains cushioned on the back of a weaker yen versus the US dollar as upbeat US macro data continues to boost the greenback.

Meanwhile, traders stick to cautious mode ahead of ECB policy meeting for further cues on the cross.

EUR/JPY Levels to consider

To the upside, the next resistance is located at 132.74 and above which it could extend gains to at 133 levels. To the downside immediate support might be located at 132.15 levels below that at 130.89 levels.

USD/JPY steadies near day high

The USD/JPY pair has steadied near the day high of 119.89 levels amid lack of fresh fundamental cues during the European session. The lackluster action in the US Treasuries is doing little to help the pair.
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